annual report on sapard programme implementation in ... - MADR

Annual Report on SAPARD Programme Implementation in Romania in 2008 

ANNUAL REPORT ON SAPARD PROGRAMME 

IMPLEMENTATION IN ROMANIA 

2008 

Revised version 

ROMANIA 

September, 2009 

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CONTENT 

EXECUTIVE SUMMARY...............................................................................................................6 

Introduction ...............................................................................................................................17 

Chapter I - Changes in the general conditions of Romania and their impact on the 

SAPARD Programme implementation.....................................................................................23 

I. 1 Institutional and political framework in Romania.............................................................23 

I. 2 Structural characteristics of Romanian economy and the macro-economic 

development ..............................................................................................................................23 

I. 3 Demographic developments and population characteristics in Romania.....................25 

I. 4 The Romanian agricultural and rural development policy ..............................................27 

Chapter II - Assessment of the progress regarding the implementation of the priorities, 

measures and sub-measures of the SAPARD Programme ...................................................31 

II. 1 General Framework............................................................................................................31 

II. 2 Analysis of the progress recorded in the implementation of SAPARD Programme ...34 

II. 2.1 Measure 1.1 „Improvement of processing and marketing of agricultural and 

fisheries products” – projects not affected by natural disasters .........................................34 

II. 2.2 Measure 1.2 „Improving the structures for quality, veterinary and plant healthcontrol, 

for the quality of food stuffs and for consumer protection”...................................36 

II. 2.3 Measure 2.1 „Development and improvement of rural infrastructure” - projects 

not affected by natural disasters .............................................................................................37 

II. 2.4 Measure 3.1 „Investments in agricultural holdings” - projects not affected by 

natural disasters........................................................................................................................39 

II. 2.5 Measure 3.2 „Setting up of the producers groups” .....................................................41 

II. 2.6 Measure 3.3 „Agricultural production methods designed to protect the 

environment and maintain the countryside” ..........................................................................41 

II. 2.7 Measure 3.4 “Development and diversification of economic activities generating 

multiple activities and alternative income”-projects not affected by natural disasters .....42 

II. 2.8 Measure 3.5 „Forestry”...................................................................................................44 

II. 2.9 Measure 4.1 „Improvement of vocational training” .....................................................45 

II. 2.10 Measure 4.2 “Technical Assistance”...........................................................................46 

II. 3 Expenditures by measures................................................................................................46 

II. 3.1. Paid projects...................................................................................................................46 

II. 3.2. Approved projects..........................................................................................................54 

II. 3.3 Finalized projects ............................................................................................................58 

II. 3. 4 Sensitive sectors............................................................................................................60 

II. 3.5 Sanctioned and cancelled projects ...............................................................................65 

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II. 4 Achievement stage for the proposed objective...............................................................69 

II. 4.1 Measure 1.1 “The Improvement of processing and marketing of agricultural and 

fisheries products” ...................................................................................................................69 

II. 4.2 Measure 1.2 „Improving the structures for quality, veterinary and plant healthcontrol, 

for the quality of food stuffs and for consumer protection”...................................72 

II. 4.3 Measure 2.1 „ Development and improvement of rural infrastructure” .....................72 

II. 4.4 Measure 3.1 “Investments in agricultural holdings”....................................................75 

II. 4.5 Measure 3.4 „Development and diversification of economic activities generating 

multiple activities and alternative income”.............................................................................77 

II. 4.6 Measure 3.5 „Forestry”...................................................................................................78 

II. 5 Conclusions on the differences between Regions/Measures/Sub-Measures found 

in the projects implementation ................................................................................................79 

Chapter III - Measures to improve quality and efficiency of SAPARD Programme 

implementation........................................................................................................................106 

III. 1 Activities of the Managing Authority .............................................................................106 

III. 2 Competent Authority – National Fund Activities..........................................................108 

III. 2.1 Financial aspects regarding the implementing status of SAPARD Programme ....108 

III. 2.2 Accreditation monitoring during 2008........................................................................111 

III. 2.3 Clearance of accounts .................................................................................................114 

III. 2.4 Irregularities <strong>report</strong> ......................................................................................................114 

III. 3 Paying Agency for Rural Development and Fishery activities....................................115 

III. 3.1. Audit missions performed by the Internal Audit Directorate .................................115 

III. 3.2 Control missions performed by Control and Antifraud Directorate ........................123 

III. 4 The activities of the SAPARD Programme Monitoring Committee.............................129 

III. 5 Monitoring and evaluation system ................................................................................130 

III. 6 Measures taken to correct problems identified in Programme’s implementation ....131 

III. 7 Assuring the promotion of SAPARD Programme in Romania....................................136 

III. 8 Using the Technical Assistance.....................................................................................139 

III. 9 Compliance of the complementarity principle between community funds and 

national funds..........................................................................................................................140 

Chapter IV - Coordination of SAPARD Programme with Other Financial Instruments for 

International Support ..............................................................................................................144 

IV. 1 General framework .........................................................................................................144 

IV. 2 Assistance under PHARE Programme..........................................................................145 

IV. 3 Other financial instruments ...........................................................................................147 

IV. 3.1 The Rural Development Project for the Apuseni Mountains funded by IFAD ........147 

IV. 3.2 Projects financed by the World Bank................................................................................149 

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Acronyms 

approx. - approximate 

AFD – Antifraud Fight Department 

AFA – Annual Financing Agreement 

Art. – Article 

CAD – Control and Antifraud Directorate - Paying Agency for Rural Development 

and Fishery 

CAP – Common Agricultural Policy 

CCIR – Chamber of Commerce and Industry of Romania 

CGFSME – Credit Guarantee Fund for Small and Medium Enterprises 

COAC – County Offices for Agriculture Consultancy 

CICGS – Council for the Implementation of the Competitive Grant Schemes 

CPORDF - County Paying Offices for Rural Development and Fishery 

CU/S - Contracting Unit/Service 

DARD – Directorate for Agriculture and Rural Development 

DC - Coordination Directorate 

DG Agri – Directorate General for Agriculture and Rural Development – European 

Commission 

DGRD – Directorate General for Rural Development – Romanian Ministry of 

Agriculture and Rural Development 

DNA – Directorate National Anti-Corruption 

EAFRD – European Agricultural Fund for Rural Development 

EAGF – European Agricultural Guarantee Fund 

EAGGF – European Agricultural Guidance and Guarantee Fund 

EC – European Community 

EIB – European Investment Bank 

EU – European Union 

FIFG – Financial Instrument for Fishery Guarantee 

FOP – Fishery Operational Programme 

GD – Government Decision 

GDP – Gross Domestic Product 

GEO – Government Emergency Ordinance 

GO – Government Ordinance 

IAD – Internal Audit Directorate – Paying Agency for Rural Development and 

Fishery 

IBRD – International Bank for Reconstruction and Development 

IC – Info-Centres 

ICT – Information and Communication Technology 

IFAD – International Fund for Agricultural Development 

ISPA – Instrument for Structural Policies for Pre-Accession 

IWUA – Irrigation Water User Association 

JMC – Joint Monitoring Committee 

MA – Managing Authority for SAPARD Programme 

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MAFA – Multi-Annual Financing Agreement 

MAFRD – Ministry of Agriculture, Forests and Rural Development 

MAI – Ministry of Administration and Interior 

MC – Monitoring Committee 

ME – Ministry of Environment 

MPF – Ministry of Public Finance 

MH – Ministry of Health 

MT – Ministry of Transport and Infrastructure 

NAAC – National Agency for Agricultural Consultancy 

NAFA – National Agency for Fishery and Aquaculture 

NALC – National Agency for Land Consolidation 

NAO – National Authorising Officer 

NF-National Fund 

NFI – Non-banking Financial Institution 

NGO – Non-Governmental Organisations 

No. - number 

NPARD – National Programme for Agriculture and Rural Development 

NRDP - National Rural Development Programme 2007-2013 

NSVFSA – National Sanitary Veterinary and Food Safety Authority 

OG – Official Gazette 

PARDF – Paying Agency for Rural Development and Fishery 

PAS - Payment Accountancy Service 

PHARE – Poland Hungary, Aid for Reconstruction of the Economy 

PIAA – Paying and Intervention Agency for Agriculture 

PIAD - Public Internal Audit Directorate 

PPD - Project Payment Directorate 

PMU – Project Management Unit 

RCGF – Rural Credit Guarantee Fund 

RPCRDF – Regional Paying Centres for Rural Development and Fishery 

RFP – Rural Financing Project 

SVFSD - Sanitary Veterinary and Food Safety Directorate 

SAPARD – Special pre-Accession Programme for Agriculture and Rural 

Development 

SAD-Selection, Assessment Directorate 

SAO/S – Selection, Assessment Office/Service 

MARS- Monitoring, Assessment, Reporting Service 

SDR – Special Draft Right 

STAR Committee – Agricultural and Rural Structures Committee 

TDS – Technical Delegated Services 

ToR – Terms of Reference 

TP - Technical Project 

UPS - Under Pressure Station 

USD - US Dollar 

T - tone 

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EXECUTIVE SUMMARY 

In accordance with the provisions of Article 8, section B of the Annex to the Multi- 

Annual Financing Agreement between the Government of Romania and the 

Commission of the European Communities (MAFA), signed on 2 nd of February 2001 

in Brussels (Agreement ratified by Law no. 316/2001 published in the Official Gazette 

(OG) no. 362/2001), Romania has the responsibility of elaborating and submitting to 

the European Commission, within six months of the end of each full calendar year of 

implementation, the Annual Report on SAPARD Programme implementation for the 

previous year. In this respect, the Managing Authority for SAPARD Programme (MA) 

in collaboration with the institutions involved in the Programme’s implementation, 

draws up the above mentioned <strong>report</strong> and submits it for analysis and approval to the 

members of the Monitoring Committee for SAPARD Programme, previous to its 

submission to the Commission. 

The current Report covers the implementation period from the 1 st of January 2008 up 

to the 31 st of December 2008. 

In accordance with the Commission Decision EC (2000) no. 3742 of 12 th of 

December 2000, the National Plan for Agriculture and Rural Development (NPARD) 

is the basis of the SAPARD Programme Implementation in Romania. NPARD was 

drawn up by the Ministry of Agriculture, Forests and Rural Development (MAFRD). 

Changes in the general conditions of Romania and their impact on the SAPARD 

Programme implementation 

As regards the macro-economic trends and structural characteristics of the 

Romanian economy, it can be noticed that the country’s GDP has raised up to 

503,958.7 million lei in 2008, from 412,761.5 million lei in 2007. The <strong>annual</strong> GDP 

growth rate was 7.1 percent in 2008 compared to 6.2 percent in 2007. 

The share of the private sector within the GDP recorded a setback in 2008, 

accounting for 70.8 percent of the total GDP, down from 72.2 percent in 2007. The 

<strong>annual</strong> inflation rate marked an increase in 2008, reaching a 7.85 percent compared 

to 4.8 percent in 2007. 

The unemployment rate recorded an increase in 2008, compared to the previous 

year, reaching by the end of 2008 a 4.4 percent in comparison to 4.1 percent in 2007. 

In 2008, the private sector share in agriculture, forestry, exploitation and game 

economy, reached 94.2 percent of the sector’s overall gross added value. 

Concerning the evolution of the agricultural production sector, compared to the 

previous year can be noticed an increase in 2003 (up to 7.5 percent), 2004 (up to 

18.1 percent), 2006 (up to 2.4 percent), as well as in 2008 (up to 21.7 percent). 

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As of July 1 st 2008, Romania’s population totalled 21.50 million inhabitants, out of 

which the rural population accounted for 44.9 percent of the total. 

The age structure of the population confirmed that the slow, but steady, trend of 

demographic aging continued, with higher numbers in rural areas. In the rural area, 

the female population is older than the male one. The average population age – 

higher among the female one – has risen in both areas compared with 2007. 

Education wise, in the third quarter of the year 2008, 62.4 percent of the population of 

15 and over has at least high-school education (52.7 percent high-school, and 9.7 

percent, higher education graduates), while 37.7 percent of the population of 15 and 

over presents a low education level. 

There are differences between the urban and the rural population structures in terms 

of their level of education. Thus a larger concentration of the 15+ population with 

higher education is found in the urban area (with 76.9 percent of people being highschool 

or upper education graduates), while in the rural area, the low-education 

population prevails (about 55.8 percent have graduated the elementary or secondary 

school or have no education at all). The most significant gap is found among higher 

education graduates, whose share is seven times higher in the urban area. 

Assessment of the progress regarding the implementation of the priorities, 

measures and sub-measures of the SAPARD Programme 

As regards measure 1.1 „Improvement of processing and marketing of agricultural 

and fisheries products”, during the 48 sessions held during August 2002 - July 

2006, 736 projects were submitted out of which 466 were contracted having a total 

eligible approved value of 1,248,222.502 thousand LEI, respectively 345.143 million 

Euro. 

Within measure 1.2 „Improving the structures for quality, veterinary and plant healthcontrol, 

for the quality of foodstuffs and for consumer protection”, during the 5 

sessions held between May 2006 - October 2006, out of the 20 submitted projects, 

20 projects were contracted having a total eligible approved value of 129,428.687 

thousand LEI, respectively 36.104 million Euro. 

During the 9 sessions held between August - November 2002 and between April – 

August 2006 for measure 2.1 “Development and improvement of rural 

infrastructure”, out of the 781 submitted projects, 762 projects were contracted 

having a total eligible approved value of 2,106,678.208 thousand LEI. 

Out of the total number of approved projects for Measure 2.1, approximately 50% are 

under the sub-measure Roads in rural areas (380 approved projects, 36% are under 

the sub-measure Drinkable water supply in centralised system in rural areas (273 

approved projects) and 11% are under the sub-measure Sewerage in centralised 

system in rural areas (87 approved projects) and 3% are approved projects for submeasures 

on prevention and protection works against floods (22 approved projects). 

During the 32 sessions held between December 2003 – July 2006, within measure 

3.1 „Investments in agricultural holdings” from the total number of submitted projects 

– 2,984 projects, 1,921 were contracted with a total eligible approved value of 

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834,372.636 thousand LEI, respectively 231.323 million Euro. 

Approximately 62% of the approved projects for this measure are for investments in 

sub-measure “Field crops” (1,190 approved projects), regarding mainly the 

procurement of machinery and independent equipments. 

For measure 3.2 „Setting up of the producers groups”, during the 5 sessions held 

between July 2006 - November 2006, 4 projects were submitted, these projects were 

contracted having a total eligible approved value of 304.608 thousand LEI, 

respectively 0.086 million Euro. 

About 75% of the approved projects for this measure refer to the investments on 

submeasure Milk (3 approved projects). 

During the 5 sessions held between July 2006 - November 2006, within measure 3.3 

„Agricultural production methods designed to protect the environment and maintain 

the countryside”, 48 projects were submitted, out of which 47 were contracted with a 

total eligible approved amount of 764.719 thousand LEI, namely 0.217 million Euro. 

The 47 contracted projects aim at types of activities regarding the preserving the 

biodiversity by using the traditional agriculture practices. 

For measure 3.4 “Development and diversification of economic activities generating 

multiple activities and alternative income”, during the 32 sessions held between 

December 2003 – July 2006, from the total number of 1,658 submitted projects, 

1,080 projects were contracted, with a total eligible approved value of 251,672.724 


Approximately 60% of the approved projects for this measure is for investments in 

sub-measure “Rural Tourism” (643 approved projects). Likewise sub-measure “Other 

Activities” holds a quota of 31% (335 contracts), out of total number of approved 

projects for measure 3.4, most of the investments are made in bee-keeping (214 

contracts representing 64% out of the total number for this sub-measure) and to a 

smaller extent in snail and frog breeding (88 contracts representing 26% of the total 

number for this sub-measure). 

During the 3 sessions held between May - July 2006, within measure 3.5 „Forestry”, 

out of the 158 submitted projects, 114 projects was contracted having a total eligible 

approved value of 236,504.634 thousand LEI, respectively 66.677 million Euro. 

As regards measure 4.1 “Improvement of vocational training”, by the end of 2008, 

5 projects with a total value of 10,521.610 thousand LEI were approved, meaning 

2.901 million Euro; all these projects were contracted during 2005. 

By the end of 2008, 10 projects, with a total value of 5,214.570 thousand LEI, 

meaning 1.374 million Euro, were approved under measure 4.2 “Technical 

Assistance”. 

The approved projects ensure technical assistance for: Monitoring Committee 

meeting (1 project), national seminars (2 projects), informative and publicity 

campaigns (2 projects), making preparatory studies for other measures (3 projects) 

and making the mid-term evaluation of the Programme (2 projects). 

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Until 31 st of December 2008, the amount of the paid projects on measures was of 

1,278.744 million Euro, respectively 254.030 million Euro for year 2008, out of which: 

• 340.683 million Euro for measure 1.1, representing 26.64% of the total 

amount of the executed payments; 







• In 2008 the payments for measure 3.2 started. The payments executed 

were in value of 0.029 million Euro, representing 0.002% of the total amount 

of the executed payments; 

• 0.187 million Euro for measure 3.3, representing 0.01% of the total amount 










Regarding the approved projects, until December 31 st 2008, 4.414 projects were 

approved with a public value of 1,322.391 million Euro, on the investment measures, 

out of which 10.56% represent contracts under Measure 1.1, 0.45% represents 

contracts under Measure 1.2, 17.26% represent contracts under Measure 2.1, 

43.52% are projects contracted under Measure 3.1, 0.09% are projects contracted 

under Measure 3.2, 1.07% are projects contracted under Measure 3.3, 24.47% are 

projects contracted under Measure 3.4 and 2.58% are projects contracted under 

Measure 3.5. 

The public contracted value, afferent to the contracts on Measure 1.1, was of 

345.143 million Euro, representing 26.10% out of the total commitments of the 

PARDF. On Measure 1.2 the public contracted value was of 36.104 million Euro i.e. 

2.73% out of the total commitments of the PARDF. On Measure 2.1, the public 

contracted value was of 573.231 million Euro i.e. 43.35% out of the total 

commitments of the PARDF. On Measure 3.1, the public contracted value was 

231.323 million Euro i.e. 17.49% out of the total commitments. On Measure 3.2, the 

public contracted value was 0.086 million Euro i.e. 0.01% out of the total 

commitments. On Measure 3.3, the public contracted value was 0.217 million Euro 

i.e. 0.02% out of the total commitments. On Measure 3.4, the public contracted value 

was 69.610 million Euro i.e. 5.26% out of the total commitments of the PARDF. On 

Measure 3.5 the public contracted value was 66.677 million Euro i.e. 5.04% out of the 

total commitments of the PARDF. 

At the same time, by 31 December 2008, a number of 120 projects affected by 

natural disasters were approved having a public value of 73.846 million Euro on the 

investments measures. Out of these projects, 2.50% represent contracts on Measure 

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1.1, 69.17% represent contracts on Measure 2.1 and 25.83% represent contracts on 

Measure 3.1, respectively 2.50% are projects contracted on Measure 3.4. 

The contracted public value afferent to the contracts affected by disasters on 

Measure 1.1 was of 6.315 million Euro, representing 8.55% from the total PARDF 

commitments. On Measure 2.1, the public contracted value was of 59.898 million 

Euro, respectively 81.11% from the total PARDF commitments. On Measure 3.1, the 

public contracted value was of 7.183 million Euro, respectively 9.73% from the total 

commitments and on Measure 3.4, the public contracted value was of 0.450 million 

Euro, respectively 0.61% from the total PARDF commitments. 

For the entire Programme, at the end of 2008 the total committed amount (1,400.512 

million Euro) shows a commitment degree of 92.05% from the 2000-2006 

allocations. 

By December 31 st 2008, 3,965 projects were finalized, out of which 430 on 

Measure 1.1, out of which one finalized project being projects affected by natural 

disasters, 6 projects were finalized on Measure 1.2, 749 projects were finalized on 

Measure 2.1 out of which 50 finalized projects being projects affected by natural 

disasters, 1,807 projects on Measure 3.1 out of which 31 finalized projects being 

projects affected by natural disasters, 902 projects on Measure 3.4, out of which 2 

finalized projects being projects affected by natural disasters, 56 projects on 

Measure 3.5, 5 projects on Measure 4.1 and 10 projects were finalized on Measure 

4.2. 

Out of 3,965 projects, 777 projects were finalized in 2008 as follows: 120 projects 

under Measure 1.1, 6 projects under Measure 1.2, 148 projects under Measure 

2.1, 184 projects under Measure 3.1, 289 projects under Measure 3.4, 26 projects 

under Measure 3.5, 3 projects under Measure 4.1 and 1 projects under Measure 

4.2. 

By December 31 st 2008, according to the official data, 806 projects were cancelled 

and sanctioned due to irregularities, out of which 99 projects on Measure 1.1, 2 

projects on Measure 1.2, 228 projects on Measure 2.1, 168 projects on Measure 3.1, 

45 projects on Measure 3.3, 247 projects on Measure 3.4, 6 projects on Measure 3.5, 

2 projects on Measure 4.1 and 9 projects on Measure 4.2. 

Measures to improve quality and efficiency of SAPARD Programme 

implementation 

According to its specific tasks, in 2008, the Managing Authority for SAPARD 

Programme (MA) organized a number of activities to help increase the effectiveness 

of the Programme implementation, by ensuring the coordination of the monitoring 

and <strong>report</strong>ing activities. 

Given that art. 2 of the Multi-Annual Financial Agreement stipulates that the EC 

contribution is determined through Annual Financial Agreements, the MA has taken 

the necessary steps to conclude, ratify, and notify the ratification of Annual Financial 

Agreement 2006. 

On December 4 th , 2008, the Agreement between the Romanian Government and the 

European Communities’ Commission, on behalf of the European Community, was 

10


signed at Bucharest and Bruxelles, to amend the Annual Financing Agreement 2006. 

The agreement extends the validity deadline of the Community’s financial 

commitment for 2006 up to December 31 st , 2009. Thus, the decommitment of funds 

allocated to Romania under SAPARD Programme for 2006 is avoided. 

In 2008, the Managing Authority organized the 16 th reunion of the Monitoring 

Committee for SAPARD Programme (MC), on the 25 th of November. The approval by 

the MC members, in written procedure, of the 2007 SAPARD <strong>annual</strong> <strong>report</strong> was 

considered the 15 th reunion. 

The Managing Authority ensured the secretariat Committee’s reunions and 

maintained a permanent contact with the representative bodies of the MC, in order to 

identify the problems they are facing. 

In accordance with Art. 8 - Section B in MAFA, the MA elaborated the Annual Report 

on the SAPARD Programme implementation in Romania for 2007, which was 

submitted to the Monitoring Committee members, for approval, in written procedure, 

on 16 th of June 2008. 

The <strong>report</strong> was sent for further approval to the European Commission on 20 th of June 

2008. 

Also, SAPARD MA proposed for approval of the MC members the modification of 

NPARD, concerning the reallocation within measure 2.1 “Development and 

improvement of rural infrastructure”, for 2006, of an amount of 45.00 million Euro 

from the Community contribution from the affected areas to the not affected areas, 

without modifying the initially allocated amount for this measure, respectively the 

value of 524.81 million Euro. 

Also, the MA proposed the increase with 0.1 million Euro, Community contribution for 

measure 4.2 “Technical Assistance”, for 2005, through redistribution from measure 

1.2 “Improving the structures for quality, veterinary, and plant-health control, for the 

quality of foodstuffs and for consumer protection” in order for the financial allocation 

level to correspond to the value foreseen in the acquisition programme elaborated for 

this measure. 

The National Fund within the Ministry of Public Finances submitted in 2008 to the 

European Commission – DG Agri Declarations of expenditure and payment 

applications for a total amount of 152,050,058.27 Euro. 

According to the supplementary Declaration of expenditure and the Request of Funds 

no. 36, with cut off date of 30th November 2008, the total amount of expenditures 

from European Union’s SAPARD funds from the beginning of the programme up to 

31 st November 2008, is 909.963.876,79 Euro. This sum also includes the amount of 

685.167,89 Euro representing payments effectuated from the interest gathered in the 

Euro SAPARD account. 

During 2008 the European Commission reimbursed to the National Fund a total 

amount of 10.549.598, 00 Euro from the total eligible amount requested in 2008. 

The difference from the requested amount and the transferred one in amount of 

141.500.460.27 Euro, will be subjected to the transfers from the European 

11


Commission from the budget of 2009, after the implementation of the ”Action plan for 

the implementation of DG AGRI’s recommendations following the monitoring mission 

from June, 3rd-13th 2008”. 

Due to the exhausting of the available amount in Euro SAPARD account, determined 

by the time difference between its use and their reimbursement by the European 

Commission (EC), and of the suspension of the payments by EC, the National Fund 

transferred to PARDF an amount of 141.629.043, 84 Euro. On 31.12.2008 it should 

have been replenished the buffer fund account with the amount of 117.663.669,13 

Euro. This amount is to be returned to the state budget as soon as it will be restarted 

the EC payments to Romania. 

According to the stipulations of art. 6 of the EC Regulation no. 248/2007 regarding 

the measures concerning the multi-<strong>annual</strong> financing agreements and the <strong>annual</strong> 

financing agreements signed on the basis of SAPARD Programme, as well as to the 

transition from the SAPARD Programme to the programmes for rural development, 

the National Authorising Officer (NAO) informed the European Commission as soon 

as it was proposed any modification in the implementing of SAPARD Programme 

during 2008. 

Following the recommendations submitted by the auditors EC-DG AGRI, as a result 

of the monitoring mission of SAPARD Programme in Romania, during 3-13 June, 

2008, the national payments to the beneficiaries were suspended. NAO imposed to 

PARDF some conditions according to which these payments will be realised from the 

state budget. 

These conditions were mainly pointing out the improvement of PARDF procedures 

and also to ensure a sufficient number of trained staff so that it is ensured that the 

large number of requests of funds, registered by PARDF during the period when the 

payments were suspended, will be processed in time and accordingly. Only after the 

fulfilment of the conditions and the communication to EC of the Instruction no. 118, 

on 25.09.2008, it has been restarted the national payments from funds belonging to 

the state budget for the beneficiaries of SAPARD Programme. 

During 2008, the activities and audit missions performed by the Internal Audit 

Directorate within the Paying Agency for Rural Development and Fishery, in 

accordance with the Annual Audit Plan for 2008 and in accordance with the Strategic 

Audit Plan for period 2008-2010 for SAPARD Programme and included checks as 

regards: 

• The manner the procedures for the implementation of the Measures 1.2, 3.2, 

3.3 („100% Re-performance”) are observed and the follow up of the 

recommendations related to these verifications; 

• The completeness, the accuracy and the veracity of the Agency’s accounts for 

the years 2006 and 2007; 

• The manner the public procurement procedure for the projects related to the 

Measure 2.1 of the regions affected by natural disasters is observed; 

• Assessing the PROSYS software application; 

• Assessing the manner of establishing the public procurement procedure (G3 

ACP) applicable to the procurements performed by the beneficiaries of the 

Measures 1.2 and 2.1 during 2007; 

• Identifying the causes which led to the emergence of the differences between 

12


the Agency’s directorates records for the projects financed by SAPARD 

Programme; 

• Assessing the audit trail for the instructions and circulars letters issued in order 

to amend the procedures for the SAPARD Programme’s implementation; 

• Assessing the Procedure Manual for recording and recovering the debts G8 

IRD; 

• Assessing the proposals to amend the payments’ execution procedure, G6 – 

EP; 

• Assessing the proposals to amend the procedures drawn up for the 

implementation of the SAPARD Programme in compliance with the provisions 

of the MARD’s Order no. 63/2008; 

• Assessing the proposals for the modifications and completions of the 

procedures drawn up for the implementation of the SAPARD Programme in 

compliance with the European Commission’s recommendations by letter no. 

16.859/09.07.2008; 

• Following up the recommendations and observations made by authorized 

external entities, namely: European Court of Auditors, European 

Commission’s auditors, Audit Authority from the Romanian Court of Accounts, 

Ministry of Public Finances – Internal Public Audit Directorate, Control 

Department of the Government, MARFD’s General Directorate for Technical 

Inspections and Control; 

Following these audit missions, the Internal Audit Directorate issued audit <strong>report</strong>s that 

were submitted to the management of Paying Agency for Rural Development and 

Fishery, to the National Authorizing Officer, to the Audit Directorate within MAFRD, to 

the external auditors within Audit Authority - Romanian Court of Accounts, the 

Ministry of Public Finance – Internal Public Audit Directorate and European 

Commission. 

The main findings and recommendations with the high level of importance drawn up 

as a result of the audit missions and presented in the audit <strong>report</strong>s for year 2008 

address to the following deficiencies: 

• Execution of an overpayment; 

• The principle of sound financial management was not observed according to 

MAFA’s provisions, Section B, article. 4; 

• Filling in and/ or clarifying the procurements procedures; 

• The discrepancies between the procedures’ manual G8 - IRD and the other 

PARDF procedures elaborated for the SAPARD Program or other documents 

from the national legislation; 

• The provisions of the national legislation in force regarding the public 

procurements have not been observed; 

• Lack of assurance measures; 

• Use of a procedure manual that does not observe the requirements of the 

European Commission; 

• Incomplete procedural provisions; 

• Deficiencies in communication. 

According to the accredited procedure, the Control and Antifraud Directorate (CAD), 

under the direct subordination of the general director of PARDF, carries out technical 

and financial verifications of the projects in terms of their certification, conformity, 

eligibility, selection and payments, maintenance of the eligibility on a 5-year period of 

time, and also in terms of internal control in order to prevent fraud and also to 

13


assure the proper use of funds, observing the quality requirements defined in the 

project. 

The main control activities consisted in: 

I. The verification of the projects during the implementation and execution stage; 

II. The verification of the projects after the last payment (the ex-post verification); 

The activities of the SAPARD Programme Monitoring Committee 

During the 2001-2008 period, sixteen reunions of the Monitoring Committee have 

been carried out, of which the last two during 2008. During 2008, was organized a 

Monitoring Committee meeting, and also a written procedure of the Annual Report 

approval. 

Following the consultations with the European Commission’s officials it was decided 

that the approval of the 2007 SAPARD <strong>annual</strong> <strong>report</strong> by the Monitoring Committee 

members, in written procedure, to be considered a reunion of the Monitoring 

Committee, namely the 15 th . 

Monitoring and evaluation system 

The monitoring of SAPARD Programme is performed using the indicators 

corresponding to the specific character of the assistance and socio-economic 

structural and environmental situation in Romania. 

At PARDF’s level, the monitoring indicators are grouped as follows: regional 

indicators, financial monitoring indicators, and achievement indicators. 

To ensure an efficient system to trace and point out the SAPARD Programme’s 

implementation stage, a series of actions related to monitoring reflected in various 

daily, weekly or monthly situations regarding the collection of information and 

indicators in different stages a project goes through: application, selection, 

notification, contracting, payment claim application, payment authorization and the 

actual payment of the instalment. 

Measures taken to correct problems identified in the SAPARD Programme’s 


In order to solve the problems identified during the Programmes’ implementation, the 

following have been implemented: 

• Actions regarding procedures’ improvement (improvement of the internal 

control system referring to the management of the instructions, modification of 

the procurement procedures for the public beneficiaries of the SAPARD 

Programme). 

• Actions regarding the setting up of a database which contains all the projects 

that were submitted within the SAPARD Programme. On 31st of August 2008, 

the procedure for loading the database with all information was launched so at 

the moment the database contains all SAPARD projects submitted within 

SAPARD Programme, all addenda related to each project and also contains 

all the payment instalments (including all the information related to the 

14


payment order that the respective transaction has been made). 

• Measures related to endowment – during 2008, procurements from the 

Agency’s own budget in total value of 3,543.600 lei, were performed, beside 

the current functioning expenditures. 

• Measures regarding the ensuring of the necessary staff (based on G.E.O. no. 

65/2008 on the amendment and completion of G.E.O. 13/2006 regarding the 

establishment, organization and functioning of the Paying Agency for Rural 

Development and Fishery, by re-organizing SAPARD Agency, as well as for 

setting up of some measures regarding the effectiveness of the Paying and 

Intervention Agency for Agriculture), PARDF has 1613, 1461 occupied and 

152 are vacant. On 31 st of December 2008, the degree of filling in the job 

positions was of 90%. 

• Measures of staff training - aimed at strengthening of the proffessional 

competences according to the job position requirements and the strategy of 

Agency’s development concerning the following fields: security of information, 

measures of rural development concerning the evaluation, contracting, 

authorizing and payment accounting, debts recovering, legislation, 

management, communication processes and unitary application of the working 

procedures regarding the SAPARD and EFARD Programmes. The number of 

employees included in the training sessions was of 1400. 

• Measures regarding the legal framework. 

Assuring the SAPARD Programme promotion in Romania 

The promotion activity of SAPARD Programme during 2008 was achieved mainly 

through the presentation of the Programme’s implementation stage, by press 

releases and public information, successful projects implemented using SAPARD 

funds and also achieved within the specific public events. 

In this respect, PARDF carried out a series of information activities, namely: 

• Presentation of models of projects implemented under SAPARD; 

• Drawing up and distributing informative materials; 

• Participation in promotion events; 

• Filing in and updating PARDF’s website. 

In addition to the accession and implementation of the National Programme of Rural 

Development 2007 – 2013, the information provided by the specialized department 

(Promotion, Communication and Mass-Media Relations Directorate - PCMMRD) and 

by the responsible for the advertising campaigns at regional and county levels was 

focused on the progress of SAPARD Programme, especially as regards the 

payments execution process. 

Therefore, the Paying Agency for Rural Development and Fishery has allocated a 

special attention for this type of communication, ensuring the mediating of the 

SAPARD Programme and of the EFARD through: press releases and efficient 

communication with mass-media. 

Using the Technical Assistance 

As regards Measure 4.1 “Improvement of vocational training”, 5 projects had been 

approved by the end of 2008, in value of 13,287.55 thousand lei, representing 3.65 

million Euro. All these projects had been contracted in 2005. 

10 projects in value of 5,839.98 thousand lei, representing 1.54 million Euro, had 

15


been approved by the end of 2008 under the technical assistance measure. 

Observing the principle of complementarity of the Community funds with 

national funds 

According to the provisions of the art. 3 ”Complementarity and technical assistance“ 

from the Council Regulation (EC). 1268/1999 on the financial aid of the preaccession 

measures for agriculture and rural development in the candidate countries 

of Central and Eastern Europe in the pre-accession period, "Community action 

complements national actions appropriate or contribute to them." To these provisions, 

the Romanian Government promotes a policy to support the agricultural producers. 

In order to support producers in the crop and livestock sectors, about 3,127,090,019 

lei were allocated from the 2008 MAFRD approved budget through the financial aid 

programme promoted by the Ministry, for payment of state support to farmers. 

Coordination of SAPARD Programme with Other Financial Instruments for 

International Support 

In order to accomplish the coordination of the Programme with other financial 

instruments and in order to avoid overlaps and to ensure a transparent use of 

international funding instruments, Romania has created the needed structures for 

assuring the coordination, information and monitoring of the international financial 

assistance. 

As regards the technical assistance provided under PHARE Programmes, in 2008 

PARDF benefited of a series of projects under PHARE Programme: 

• Training for the staff of the Managing Authority and for the bodies involved in 

the programming process and the setting up of the implementation system; 

• Training the staff of the institutions involved in designing and implementation 

of the Rural Development Programme and the Fishery Operational 

Programme 2007 – 2013 and communication activities of the bodies 

responsible for the implementation of the programmes; 

• Technical Assistance for the elaboration of the software necessary for the 

implementation of the Rural Development and Fishery Funds 

• Twinning to set-up adequate structures assuring the absorption of EU Rural 

Development and Fishery funds after the Accession. 

Also, through other international financial instruments, the following projects have 

been financed: 

• The IFAD - funded Rural Development Project for the Apuseni Mountains; 

• The “Rehabilitation and Reforming of the Irrigation Sector” project financed by 

the IBRD; 

• The “Modernizing the Agricultural Knowledge and Information Systems” 

(MAKIS) project funded by the World Bank. 

16


Introduction 

In accordance with the provisions of Article 8, section B of the Annex to the Multi- 

Annual Financing Agreement between the Government of Romania and the 

Commission of the European Community (MAFA), signed on 2 nd of February 2001 in 

Brussels (Agreement ratified by Law no. 316/2001 published in the Official Gazette 

(OG) no. 362/2001), Romania has the responsibility of elaborating and submitting to 

the European Commission, within six months of the end of each full calendar year of 

implementation, the Annual Report on SAPARD Programme implementation for the 

previous year. 

In this respect, the Managing Authority for SAPARD Programme (MA) in collaboration 

with the institutions involved in the Programme’s implementation, draws up the above 

mentioned <strong>report</strong> and submits it for analysis and approval to the members of the 

Monitoring Committee for SAPARD Programme, previous to its submission to the 


Up to date, Romania has drawn up five <strong>annual</strong> <strong>report</strong>s on SAPARD Programme 

implementation, the first one covering the 1 st of August 2002 – the 31 st of December 

2003 implementation period, the second one: 1 st of January 2004 –31 st of December 

2004, the third: 1 st of January 2005 – 31 st of December 2005, the fourth: 1 st of 

January 2006–31 st of December 2006 and the fifth: 1 st of January 2007 –31 st of 

December 2007. 

The Annual Report on SAPARD Programme implementation for 2007 was 

transmitted by the Managing Authority to the Monitoring Committee members, for 

analysis, on 5 th of June 2008 and was approved by them, in written procedure, on 

16 th of June 2008. The Report has been submitted to the European Commission, in 

accordance with MAFA’s provisions, on the 20 th of June 2008. 

Following the analysis performed by the Commission, the MA has received a series 

of suggestions and comments regarding the text of the Report, through letter no. 

SV/fa D(2009)4569 of 14 th of April 2009. After completing and clarifying the 

Commission’s highlighted issues, the consolidated version of the Annual Report 

regarding the SAPARD Programme Implementation for 2007, is to be sent to the 

European Commission. 

The Annual Report on SAPARD Programme implementation in Romania for 2008 

covers the implementation period since 1 st of January 2008 until 31 st of December 

2008 and, in compliance with Article 8 (5), Section B of MAFA, includes information 

on: 

• the changes in general conditions of relevance to the implementation of the 

Programme, in particular, the main socio-economic trends, changes in 

national, regional or sector policies and, where applicable, their implications 

for the consistency between SAPARD assistance and that from other 

Community financial instruments; 

17


• the progress in the implementation of the priorities and the measures in 

relation to the attainment of the objectives of the Programme, their specific 

targets in the Programme, which allows for a quantification of the physical 

indicators and indicators of results and of impact, in the Programme; 

• the steps taken by the Managing Authority, the Paying Agency for Rural 

Development and Fishery (the former SAPARD Agency) and, where 

appropriate, by the Monitoring Committee to ensure the quality and the 

effectiveness of the implementation; 

• the steps taken to ensure the co-ordination of the entire Community preaccession 

assistance; 

• the financial tables showing the expenditure per measure and, where 

appropriate, per sub-measure. 

The Implementation of SAPARD Programme in Romania 

The Special pre-Accession Programme for Agriculture and Rural Development – 

SAPARD represents a financial contribution of the European Community (EC), 

provided for in the Council Regulation (EC) no. 1268/21 st of June 1999 on 

Community support for pre-accession measures for agriculture and rural 

development in the applicant countries of central and eastern Europe in the preaccession 

period. 

According to Article 1(2) of Regulation no. 1268/1999, the Community support for the 

2000 – 2006 period, aims to contribute to the achievement of the following general 

objectives: 

a) the implementation of the acquis communautaire concerning the common 

agricultural policy and related policies; 

b) solving the priority and specific problems for the sustainable adaptation of 

the agricultural sector and rural areas in the applicant countries. 

The purpose of SAPARD Programme is to lay dawn the necessary framework for the 

implementation of a performing agriculture and a sustainable development of the 

rural areas in the candidate countries. The SAPARD Programme promotes the 

undertaking of the acquis communautaire and the progressive adaptability of the 

market mechanisms to the principles governing the Common Agricultural Policy. 

The SAPARD Programme grants to the candidate countries full responsibilities 

regarding the management of the investment projects, beginning with the selection 

stage until the payment execution, with the purpose of accumulating experience in 

the implementation of EU practices and rules, as well as in the appropriate 

management of the post-accession funds. 

On the basis of performance criteria for all the candidate countries (agricultural 

surface, population occupied in agriculture, gross domestic product, specific territorial 

situation, less favoured areas), the Commission Decision no. 595/EC/1999 lays down 

the <strong>annual</strong> indicative allocations granted to the applicant countries; thus the financial 

community contribution for Romania represents about 151 million Euro/year 

(prices/1999). 

In accordance with the Commission Decision EC (2000) no. 3742 of 12 th of 

December 2000, the National Plan for Agriculture and Rural Development (NPARD) 

is the basis of the SAPARD Programme implementation in Romania. NPARD was 

18


drawn up by the Ministry of Agriculture Forests and Rural Development (MAFRD) and 

classifies the Romanian priorities regarding the sustainable development of rural 

areas in four axes: 

Priority 1: Improving the access to markets and the competitiveness of agricultural 

processed products; 

Priority 2: Improving infrastructures for rural development and agriculture; 

Priority 3: Development of rural economy; 

Priority 4: Development of human resources. 

In Romania, these priority axes are sustained through 11 measures (from a total of 

15 provided for in the Council Regulation (EC) no. 1268/1999) considered by the 

Romanian authorities as being relevant for rural development priorities, as follows: 

Measure 1.1: Improvement of processing and marketing of agricultural and 

fishery products; 

Measure 1.2: Improving the structures for quality, veterinary and plant-health 

controls, for the quality of foodstuffs and consumer protection; 

Measure 2.1: Development and improvement of rural infrastructure; 

Measure 2.2: Water resources management; 

Measure 3.1: Investments in agricultural holdings; 

Measure 3.2: Setting-up producers groups; 

Measure 3.3: Agricultural production methods designed to protect the 

environment and maintain the countryside; 

Measure 3.4: Development and diversification of economic activities, providing 

for multiple activities and alternative income; 

Measure 3.5: Forestry; 

Measure 4.1: Improvement of vocational training; 

Measure 4.2: Technical assistance. 

The implementation of NPARD measures began gradually, starting on the 31 st of July 

2002, when the European Commission adopted the Decision 2002/638/EC conferring 

the management of SAPARD aid implementing agencies for the first three measures, 

respectively, measure 1.1 “Improvement of processing and marketing of agricultural 

and fisheries products”, measure 2.1 “Development and improvement of rural 

infrastructure” and measure 4.2 “Technical assistance”. 

On 5th of December 2003, the Commission adopted the Decision 2003/846/EC 

conferring the management of SAPARD aid implementing agencies for three more 

measures, respectively, measure 3.1 “Investments in agricultural holdings”, measure 

3.4 “Development and diversification of economic activities, providing for multiple 

activities and alternative income” and measure 4.1 “Improvement of vocational 

training”. 

During 2006, the last 4 measures of NPARD 1 were accredited, respectively measure 

1.2 “Improving the structures for quality, veterinary and plant-health controls, for the 

quality of foodstuffs and consumer protection”, measure 3.2 “Setting-up producers 

1 After the consultation with the Community, the Romanian authorities have decided not to implement 

measure 2.2. MAFRD, submitted to complete the measure 2.1 “Development and improvement of rural 

infrastructure” with a new sub-measure “Infrastructure for the preventing and the protection against 

floods”. 

19


groups”, measure 3.3 “Agricultural production methods designed to protect the 

environment and maintain the countryside” and measure 3.5 „Forestry”, after the 

submission to the European Commission on 30 th January 2006 of the final version of 

the procedures manual for their implementation. The European Commission Decision 

no. EC/298/2006 of conferring the assistance management for the above mentioned 

measures was adopted on 20 th of April 2006. 

In order to define the rules and the management conditions of the SAPARD 

Programme in Romania, the Government of Romania and the Commission of the 

European Communities signed, in Brussels, on 2 nd of February 2001, the SAPARD 

Multi-Annual Financing Agreement (MAFA). This agreement was ratified by Law no. 

316/ 2001 (OG no. 362/05.07.2001). 

According to the provisions of MAFA, the Community financial contribution, as well as 

the validity period of this contribution is <strong>annual</strong>ly established, in the <strong>annual</strong> financing 

agreements. 

Up to the present, the Romanian Government and the Commission of the European 

Communities signed the Annual Financing Agreements (AFA) afferent to the years 

2000, 2001, 2002, 2003, 2004, 2005 and 2006 as follows: 

• AFA 2000 signed on 27 th of February 2001 and ratified by Law no. 317/2001 

(OG no. 338/26.06.2001) – providing for a Community financial contribution of 

153,214,194 Euro; 

• AFA 2001 signed on 30 th of January 2002 and ratified by Law no. 416/2002 

(OG no. 508/15.07,2002) – providing for a Community financial contribution of 

156,328,303 Euro; 

• AFA 2002 signed on 1 st of April 2003 and ratified by Government Emergency 

Ordinance no. 26/2003 (OG no. 283/23.04.2003) – providing for a Community 

financial contribution of 160,630,119 Euro; 

• AFA 2003 signed on 31 st of July 2003 and ratified by Law no. 496/2003 (OG 

no. 843/26.11.2003) – providing for a Community financial contribution of 

162,223,385 Euro. This agreement was amended by AFA 2003/II signed on 

24 th of December 2004 and ratified by Law no. 258/2005 (OG no. 

861/23.09.2005) – providing for an increase of Community financial 

contribution to 163,339,076 Euro. 

• AFA 2004 signed on 12 th of May 2005 and ratified by Law no. 265/2005 (OG 

no. 920/14.10.2005) – providing for a Community financial contribution of 

157,640,000 Euro. AFA 2004 introduced in MAFA the provisions of Council 

Regulation no. 2008/2004 on the new limits for the rates of aid, establishing 

that, in respect of investments in projects except those in infrastructure of a 

type not generating substantial net revenue, the public aid (cumulative) of 

granted from all sources cannot exceed 50% of total eligible cost. Provisions 

concerning the possibility of granting national subsidies of a nature to facilitate 

access to credits granted without the benefit of any Community contribution, 

which should not be taken into consideration in determining the rate of public 

aid are also introduced in MAFA. The other amendments brought to MAFA 

consist in the application of the Commission manual entitled “Rules and 

Procedures for Service, Supply and Works Contracts financed from the 

General Budget of the European Communities in the context of Cooperation 

with Third Countries” for all the public procurement procedures initiated from 

20


the entry into force of the Agreement. The above mentioned Agreement was 

amended by AFA 2004/II signed on 7 th of July 2005 and ratified by Law no. 

25/2006 (OG no. 205/06.03.2006) that provides for a increment of the EC 

contribution for 2004, up to 158,690,000 Euro. 

• AFA 2005 signed on 29 th December 2005 at Bucharest and on 3 rd of January 

2006 at Brussels foresees a financial contribution of 175,210,000 Euro. The 

amendments brought to MAFA consist in the modification of the financial rules 

regarding the public procurements, in compliance with the new Financial 

Regulation in force in the European Community, as well as in introducing 

specific rules of reducing the community co-financing for the cases where the 

interval between receiving the supporting documents needed to make the 

payment and issuing of the payment order exceeds three months. AFA 2005 

provides, also, the compulsoriness of using the accounting and financial 

<strong>report</strong>ing system which meets the internationally accepted accounting 

standards and internationally accepted auditing standards. 

• The Romanian Government and the European Communities Commission 

signed on 31 st December 2006 at Bucharest and respectively at Brussels, the 

Annual Financing Agreement 2006 (AFA 2006). The agreement was ratified by 

Law no. 66/2007 (OG no. 228/03.04.2007). 

AFA 2006 entered into force on the 12 th of April 2007, when the European 

Commission received the official notification regarding the ratification of the 

Agreement by Romania. 

The provisions comprised in AFA 2006 refer both to establishing the financial 

commitment of the Community for Romania for 2006, as well as amending the 

MAFA and the Annual Financial Agreements for the years 2000-2005. 

Therefore, the maximal yearly contribution foreseen for Romania for 2006 is 

192,374,000 Euro. 

The agreement also foresees the extension of the validity term of the financial 

commitments established through the Annual Financial Agreements 2003, 

2004 and 2005, namely until 31 st December 2007 for AFA 2003 and 2004 and, 

respectively, until 31 st December 2008 for AFA 2005. 

At the same time, AFA 2006 foresees a provision that is also included in article 

3 of the Annual Financial Agreements 2000-2005 according to which no 

contract that involves Community funds for AFA 2000-2006 shall be concluded 

by PARDF with a beneficiary after the date Romania begins to conclude 

contracts through EAFRD. 

AFA 2006 also foresees the amending of the Multi-Annual Financial 

Agreement, both by introducing new provisions regarding Section A, B and F 

of the Annex to the Multi-Annual Financial Agreement, and also by adding a 

new Section H, that has as main purpose to establish rules regarding the 

Community external assistance. 

• The Romanian Government and the European Communities Commission 

signed on 4 th of December 2008 at Bucharest and respectively at Brussels, the 

Agreement between the Romanian Government and the European 

Communities Commission, on behalf of the European Commission, regarding 

the modification of the Annual Financing Agreement 2006. The agreement 

was ratified by Government Emergency Ordinance no. 213/2008 (Official 

Gazette no.842/ 15.12.2008) and approved by Law no. 82/2009 published in 

the Official Gazette no. 230/08.04.2009. 

AFA 2006 / II came in force on 13 th of January 2009, date on which the 

European Commission sent the official notification regarding the fulfilment of 

21


all the necessary formalities concerning the ratifying of the Agreement. 

The agreement also foresees the extension of the validity term of the 

Community’s financial commitments up to 31 st of December 2009, thus 

allowing to avoid the decommitment of the funds allocated to Romania under 

the SAPARD Programme for 2006. 

22


Chapter I 

Changes in the general conditions of Romania and their impact on the 

SAPARD Programme implementation 

I. 1 Institutional and political framework in Romania 

At the end of 2008, several changes occurred within the public institutions. Thus, 

through Government Emergency Ordinance no. 221/2008 regarding the setting out of 

reorganization measures for the central public administration (O.G no. 

882/24.12.2008) the structure and composition of the Romanian Government was 

modified. 

In this regard, at the beginning of 2009, the Ministry of Agriculture, Forests and Rural 

Development was submitted to a re-organization, on the basis of Government 

Decision no. 8/2009 on the organization and functioning of the Ministry of Agriculture, 

Forests and Rural Development, published in the O.G. no. 38/21.01.2009. 

I. 2 Structural characteristics of Romanian economy and the macro-economic 

development 

Between 2002 and 2008, the Romanian economy recorded a significant growth, as 

well as deflation and an unemployment rate decrease (registered by the National 

Agency for Employment), hence confirming the progress made towards a sustainable 

economic development. 

The country’s GDP has raised up to 503,958.7 million lei in 2008, from 412,761.5 

million lei in 2007. The <strong>annual</strong> GDP growth rate was 7.1 percent in 2008 compared to 

6.2 percent with 2007. 

The share of the private sector within the GDP recorded a setback in 2008, 

accounting for 70.8 percent of the total GDP, compared to 72.2 percent in 2007. 

The <strong>annual</strong> inflation rate marked an increase in 2008, increasing to 7.85 percent 

compared to 4.8 percent in 2007. 

The 2008 unemployment rate increased from the previous year, reaching, at the end 

of 2008 at 4.4 percent in comparison with 4.1 percent registered in 2007. During 

2002-2007 a decrease in the unemployment rate has been observed, as recorded by 

labour placement agencies. 

23


In the third quarter, in nominal terms, total household income 2 was monthly 743.19 

lei/person, up with 165.48 lei compared to 2007. The income by farming household 

increased with 109.89 lei in comparison with 2007. 

The main macro-economic indicators corresponding to the 2002 – 2008 period are 

presented in Table I.1. 

The main macro-economic indicators for 2002 – 2008 

Table I. 1 

National accounts 

Indicators 

2002 2003 2004 2005 2006 2007 1) 2008 2) 

GDP– million lei; 

current prices 

152,017.0 197,427.6 247,368.0 288,954.6 344,650.6 412,761.5 503,958.7 

GDP/inhabitant (lei) 6,974.9 9,084.0 11,413.5 13,362.8 15.967,6 19.164,7 23.435,1 

Private sector share 

within GDP (%) 

69.4 67.7 71.5 70.1 71,6 72,2 70,8 

Annual GDP growth 

rate (previous year 

5.1 5.2 8,5 4.2 7,9 6,2 7,1 

=100) % 

Annual average 

inflation rate (%) 

22.5 15.3 11.9 9.0 6,6 4,8 7,85 

Labour force 

Unemployment rate 5), 

December 31, % 

8.4 7.4 6.3 5.9 5,2 4,1 4,4 

Monthly average income per capita (lei) 

Total 228.77 283.91 368.03 412.55 473.29 577.71 743.19 3) 

Rural 194.54 246.02 326.2 339.73 375.75 465.71 596.18 3) 

Farmer households 

Gross value added share within GDP during 2002-2008 

155.82 200.46 286.89 293.77 307.36 382.38 492.27 3) 

Indicators 2002 2003 2004 2005 2006 2007 1) 2008 2) 

Industry 27.0 24.7 24.9 24.8 24.5 23.9 22.9 

Agriculture, forestry, 

game economics 

11.4 11.6 12.6 8.4 7.8 5.7 6.5 

Construction 

5.7 5.7 5.9 6.5 7.4 8.9 10.5 

4) 

Services 

46.0 47.0 45.9 48.6 48.6 50.2 49.5 

Source: National Statistics Institute of Romania 

1) Semi-final data 

2) Provisional data 

3) Data referred to third quarter 2008 

4) 

Includes: trade; transports; postal services and telecommunication; tourism; hotels and restaurants; public 

administration and defence; education; health care and social welfare; as well as other services provided to 

companies and population 

5) 

Source: National Agency for Employment. 

In 2008, the private sector share in agriculture, forestry, forestry exploitation and 

game economy reached 94.2 percent of the sector’s overall gross added value. 

2 Includes revenues from salaries, agriculture, independent non-agricultural activities, social services, ownership, 

sale of household assets, and other financial income, as well as income in kind (equivalent in lei); 

24


In the agricultural production sector, compared to the previous year, during 2002- 

2007, were recorded increases in 2003 (up 7.5 percent), 2004 (up 18.1 percent), 

2006 (up 2.4 percent), as well as in the year 2008 (up to 21.7 percent). 

In 2008, the livestock production decreased by 5.2% while the vegetal production 

recorded an increase by 39.6% in comparison with the previous year. 

Table I.2 presents the main information concerning the evolution of agriculture in 

2002-2008. 

Agriculture and rural development: basic data (2002-2008) 

Table I. 2 

Indicators 

2002 2003 2004 2005 2006 2007 2008 2) 

The share of private sector 

agriculture, forestry, 

forestry exploitation and 

game economy in the gross 

98.3 98.0 97.7 96.9 96.7 94.1 1) 94.2 2 ) 

Added Value of the Branch 

(%) 

Agricultural branch production - million lei; current prices 

Total 31,585 40,412 55,314 46,540 50,650 47,700 67,389 

- Crops 18,084 25,919 38,097 27,959 31,327 28,723 45,626 

- Livestock 13,139 14,118 16,825 18,186 18,849 18,292 21,056 

- Agricultural services 362 375 392 395 474 685 707 

Agricultural branch production indices (previous year = 100) – % 

Total 96.5 107.5 118.1 86.9 102.4 82.3 121.7 

- Crops 88.7 110.0 126.8 82.5 102.2 71.3 139.6 

- Livestock 110.2 104.6 102.9 96.9 102.4 99.4 94.8 

- Agricultural services 91.1 84.7 86.4 86.0 107.0 132.5 91.9 

Livestock numbers – thousand head 3) 

Cattle – total 2,877.8 2,897.1 2,808.1 2,861.7 2,933.5 2.818,9 2.698,7 

- cows, heifers and 

buffaloes 

1,759.3 1,756.7 1,755.5 1,812.0 1,809.8 1.732,2 1.519,7 

Swine – total 5,058.2 5,145.5 6,494.7 6,622.3 6,814.6 6.564,9 6.149,2 

- breeding sows 361.6 334.8 425.7 494.5 520.4 442,4 397,8 

Sheep and goats – total 7,945.4 8,124.9 8,086.0 8,297.7 8,405.6 9.334,3 10.497,2 

Equines – total 879.4 896.9 839.6 834.0 804.8 862,4 810,4 

Poultry – total 77,378.9 76,616.3 87,014.4 86,552.2 84,990.6 82.035,6 84.568,0 

Layer hens 44,666.5 44,121.8 51,888.9 49,724.5 50.278,2 45.207,9 40.766,0 

Bee families – thousand 781.2 840.0 888.2 888.2 891,0 982,4 1.003,5 


1 ) Semi-final data 

2) Provisional data 

3) 

Livestock numbers as of December 1, 2004, 2005, 2006, 2007 and 2008 and December 31, 2002 - 2003. 

I. 3 Demographic developments and population characteristics in Romania 

25


As of July 1 st 2008, Romania’s population totalled 21.50 million inhabitants, its rural 

population accounting for 44.9 percent of the total. 

A negative birth growth rate combined with external migration led to a continued 

decline in Romania’s population (down 33.121 thousand inhabitants in July 1 st 2007 - 

July 1 st 2008). In 2008, the drop was triggered also by the population decline in the 

urban area (down 42.331 thousand inhabitants compared to 2007). In 2008, the rural 

population increased by 9.21 thousand inhabitants compared to the previous year. 

The age structure of the population confirmed that the slow, but steady, trend of 

demographic aging continued, with higher numbers in rural areas. In the rural area, 

the female population is older than the male one. The average population age – 

higher among the female one – has risen in both areas compared with 2007 (Table 

I.3). 

Table I. 3 

Population & 

Population -1 st of July 1) (number) 

density 2003 2004 2005 2006 2007 2008 

Romania 21,733,556 21,673,328 21,623,849 21,584,365 21,537,563 21,504,442 

Rural 

(absolute 10,133.399 9,777,730 9,743,952 9,670,427 9,659,904 9,669,114 

numbers) 

- % 46.6 45.1 45.1 44.8 44.8 44.9 

Density 

(inh./Km 2 ) 2003 2004 2005 2006 2007 2008 

Romania 91.2 90.9 90.7 90.5 90.3 90.4 

Rural 

(absolute 

numbers) 

47.7 47.1 47.0 46.6 46.5 46.6 

1) Data were calculated based on the Population and Homes Census compiled on March 18, 2002. 

Population 

structure by 

age 

Romania 

0-14 15-64 

65 and 

over 

Of which: rural 

0-14 15-64 65 and over 

2003 16.7 69.0 14.3 18.7 63.0 18.3 

2004 16.1 69.4 14.5 18.3 63.2 18.5 

2005 15.6 69.6 14.8 17.8 63.4 18.8 

2006 15.4 69.8 14.8 17.7 63.6 18.7 

2007 15.3 69.9 14.8 17.4 63.9 18.7 

2008 15.2 69.9 14.9 17.4 64.0 18.6 

Average age 

2003 2004 2005 

of population Total Male Female Total Male Female Total Male Female 

Romania 38.1 36.7 39.4 38.3 36.9 39.7 38.6 37.1 39.9 

Rural 39.0 37.4 40.7 39.3 37.6 40.9 39.4 37.7 41.0 

Average age 

2006 2007 2008 

of population Total Male Female Total Male Female Total Male Female 

Romania 38.8 37.3 40.1 39.0 37.6 40.4 39.2 37.8 40.7 

Rural 39.6 37.9 41.2 39.8 38.1 41.4 39.9 38.3 41.6 


Education wise, in the third quarter of the year 2008, 62.4 percent of the population of 

15 and over has at least high-school education (52.7 percent high-school, and 

26


9.7 percent higher education graduates), while 37.7 percent of the population of 15 

and over presents a low education level. 

There are differences between the urban and the rural population structures in terms 

of their level of education. Thus a larger concentration of the 15+ population with 

higher education is found in the urban area (with 76.9 percent of people being highschool 

or upper education graduates), while in the rural area, the low-education 

population prevails (about 55.8 percent have graduated the elementary or secondary 

school or have no education at all). The most significant gap is found among higher 

education graduates, whose share is seven times higher in the urban area. 

I. 4 The Romanian agricultural and rural development policy 

Starting with the 1 st of January 2007, the date of Romania’s accession to the 

European Union, the main objective of Romanian has been the consolidation of the 

progresses and reforms carried out in order to insure a successful integration in the 

Community structures. 

Thus, for the rural development sector, Romania will continue the implementation of 

the SAPARD Programme but, at the same time, initiated the implementation of the 

new national rural development programme which benefits from a Community 

financial contribution of approximately 8 billion Euro from the European Agricultural 

Fund for Rural Development (EAFRD). 

As regards the forms of direct support, in 2008 they were set out for agricultural 

producers as premiums and subventions in order to qualitatively and quantitatively 

increase the agricultural production. The implementation system, specific conditions 

and eligibility criteria were also set out for the direct payment schemes and 

complementary national direct payments in the vegetable system, as well as the 

amount of the single area payments, complementary national direct payments, 

energy crops payments and of the separate sugar payments which are granted in 

agriculture for the vegetable sector. 

Thus, SAPS support has been granted for the crops planted on SAPS eligible, arable 

terrain: cereals (common wheat, hard wheat, rye, barley, oat, corn, sorghum, rice, 

triticals, sweet corn and other cereals), protein crops (peas, field beans, sweet lupine 

and lentil), industrial plants (sunflower, rape, conventional Soya, flax and hemp, 

tobacco, flax for oil, medicinal plants and other industrial plants), root crops (fodder 

beet, sugar beet), potatoes, fresh vegetables, strawberries, melons, flowers and 

ornamental plants, fodder plants, seed-bearing lots, other arable land crops, natural 

pastures, hayfields, permanent crops (trees, vineyards), non cultivated land. 

Decoupled national complementary payments were granted for the following crops: 

wheat and rye, barley, oat, corn and sorghum, rice, sunflower, rape, conventional 

Soya, sugar beet, vegetables for beans, potatoes, medicinal and aromatic plants, 

field and solarium vegetables, greenhouse vegetables, other arable crops while the 

production decoupled payments for flax and hemp for fibber, hops and tobacco. 

The support for sugar beet destined for sugar production and for the energy crops 

destined for bio-fuel production has been ensured through separate payment 

schemes. 

27


Having in regard the necessity to restart the production cycle while applying the 

technology specific to each agricultural crop and the lack of financial resources of the 

agricultural producers a financial support of 1 leu/liter for purchasing the gasoline 

necessary for setting up the 2008 crops. Also in this context, in order to reduce the 

tax for the gasoline used for agricultural mechanized works, following the 

consultations initiated by the Ministry of Agriculture, Forests and Rural Development 

with the Ministry of Public Finances, for the gasoline purchased for agricultural use 

during the August-December 2008 period in order to carry out the agricultural 

mechanized works for 2008 a reduced tax was applied of 80.971 euro/1000 litters, 

respectively 0.27 lei/litter. 

For setting up the 2008 autumn crops a de minimis aid was granted for approximately 

1.4 million ha. 

The commodity production was supported sugar beet, rice, fibber flax and hemp and 

Soya crops, while for the primary processing of fibber flax and hemp stems 

Community support was granted for the 2008-2009 market year. 

Following the meteorological phenomena for the period July – August 2008, 

registered in some geographical areas, the agricultural natural calamity state was 

declared for the crops seeded in autumn 2007 and spring 2008, and the maximum 

ceiling which can be granted as damage was established. 

As regards the fruits and vegetables sector, the support was directed towards the 

implementation of the EUREPGAP Good Practices System, vegetables and 

mushrooms in acclimatized areas, fruits and vegetables destined for industrial 

processing, packages and other materials necessary for wrapping fruits and 

vegetables for fresh delivery, expenditure for the storing of agricultural products. 

For the producers from the fruits and vegetables and ecological agriculture sector, 

de minimis aid was granted. 

Also, the legal framework was elaborated for granting financial support to the 

preliminary recognised producer groups and the producers’ organizations from the 

fruits and vegetable sector. 

For winegrowers, amounts were allocated for the authorization of vineyard 

plantations in order to produce wine grapes with a controlled origin, certify and mark 

wines with a name of controlled origin, plant-health treatments in the vineyard 

plantations with noble grapes for consumption and wine, including wine with a 

controlled origin. 

Also, for the vineyard sector, the legal framework was established for granting 

financial support from Community funds for promoting on third markets, restructuring 

and reconverting vineyards, ensuring the crops, using the concentrated grape must, 

first deforestation. 

The producers of potatoes for industrial purposes, hops, aromatic and medicinal 

plants, flowers, dendrological and ornamental plats also benefited from support. 

The species and the value of the financial support were set out for the internal 

production of seeds and planting material , officially certified, destined for seeding 

28


or planting in the agricultural campaigns from the fall of 2008 and spring of 2009. 

The plant-health treatments of national interest were supported for straw cereal 

crops, potatoes, vineyard, orchards and alignments. 

In the zoo-technical sector complementary national direct payments were granted for 

cattle, sheep and goats. 

The animal raisers which fulfilled certain conditions received form state budget a 

financial support for the purchase of reproduction rams and/or male goats of 60% of 

the purchase price (but not more than 1000 lei) for each specimen. 

The improvement of the animal populations was supported (through the genealogic 

registers for cattle and sheep, carrying out official controls for the production 

performances for sheep and goats, introducing, at farm level, the techniques, biotechniques 

and modern reproduction practices for the animal species, respectively 

the purchase of containers for storing frozen seminal material, supporting the testing 

costs for reproductive males, carrying out the analysis of the animal product quality 

for the genetic evaluation of animals, elaborating and maintaining the informatic 

system, setting up the data bases and estimating the improvement value of animals) 

as well as the improvement of the quality of animal products (by financially supporting 

the implementation of the carcasses classification system, supporting the production 

of meat and eggs for consumption, of compliant delivered milk and of bee families) 

The beekeepers have been supported in order to purchase medication for combating 

the varooza disease and repopulate the beehives by purchasing queen bees from the 

indigenous breed. 

The silk worm breeders have received Community support for each used box of silk 

worm eggs (at least 20,000 eggs). 

Conservation and use programmes have been financed for animal population in 

critical status, in danger of disappearing or vulnerable, by species and races and the 

genetic patrimony of horses has been supported. 

Damages have been granted for the elimination of transmissible diseases centres 

and the expenditure for neutralizing the animal waste has been supported. 

The agricultural associations set up according G.D. no. 26/2000 have been 

supported in order to attend the organizations set up at the European Union by fully 

covering the necessary subscription. 

On the basis of Law no. 150/2004 regarding the production credit the grants for the 

2008 production credits have been set out, thus providing public funds totalling 50 

million lei. The contracted agricultural credits for 2008 benefited from an average 

public fund contribution of 17% from the total volume of awarded credits, contribution 

increased to 30% for the crops set up in fall 2008. 

For the Programme for increasing the competitiveness of agri-food products, in 2008, 

120 projects have been approved and the amount of 21 mil. lei has been allocated. 

In the field of agricultural research 64 projects have been submitted within the sector 

research plan, investments have been supported and 33 grants have been 

29


signed through the Competitive grant scheme. 

Legal framework 

For harmonizing the national legislation with the Community one, as regards 

agriculture and rural development, in the 1 st of January – 31 st of December 2008, a 

series of normative papers have been elaborated and adopted, the most important 

being the following: 

• Government Emergency Ordinance no. 213/2008 for the ratification of the 

Agreement between the Government of Romania and the Commission of the 

European Communities, signed in Bucharest and, respectively, Brussels on 

December 4 th 2008, for the amendment of the 2006 Annual Financing 

Agreement between the Government of Romania and the Commission of the 

European Communities, on behalf of the European Community, signed in 

Bucharest and, respectively, Brussels on the 31 st of October 2006 (O.J. no. 

842 from 15.12.2008); 

• Government Emergency Ordinance no. 65/2008 for the amendment and 

completion of Government Emergency Ordinance no. 13/2006 regarding the 

setting up, organization and functioning of the Paying Agency for Rural 

Development and Fishery, by reorganizing the SAPARD Agency and 

establishing several measures for increasing the efficiency of activity of the 

Paying and Intervention Agency for Agriculture (O.J. no. 418 from 

04.06.2008); 

• Government Emergency Ordinance no. 104/2008 for the amendment of art. 5 

of G.E.O no. 59/2006 on insuring from state budget the public non-refundable 

co-financing funds for the SAPARD Programme investment projects (O.J. no. 

658/18.09.2008); 

• Government Decision no. 688/2008 on the amendment of Government 

Decision no. 876/2005 for the approval of the methodological norms for 

applying Law no. 218/2005 on the stimulation of the absorption of the 

SAPARD funds by undertaking the risk by the guarantee funds (O.J. no. 

493/02.07.2008); 

• Government Ordinance no. 20/2008 on the amendment and completion of 

Government Ordinance no. 79/2003 regarding the control and recovery of 

Community funds, as well as of corresponding co-financing funds, improperly 

used (O.J. no. 613/20.08.2008). 

30


Chapter II 

Assessment of the progress regarding the implementation of the priorities, 

measures and sub-measures of the SAPARD Programme 

II. 1 General Framework 

Thus, for the 10 measures accredited under SAPARD Programme, during 2008 the 

implementation of the contracted projects was continued by executing a number of 

1898 payment installments to the beneficiaries of the SAPARD Programme reaching 

a total value of 254.030 million euro. 

At the end of 2008, the total value of the financial commitments under SAPARD 

Programme was of 1,400.512 million euro, resulting in a coverage degree of 100% of 

AFA for 2000 – 2005 and of 50.65% for AFA 2006. As regards the consumption rate 

of the allocated funds, at the end of 2008, the total value of the payments executed to 

the beneficiaries of the SAPARD Programme was of 1,278.744 million Euro, 

representing a consumption rate of 100% of AFA for 2000 – 2005 and of 0.94% for 

AFA 2006 (Table II.1). 

Allocation 

Allocated Amount 

(million euro) 

Contracted 

Absorbed 

Table II.1 

Deadline for the 

absorption of 

funds 

AFA 2000 204.235 100% 100% Absorbed 

AFA 2001 208.420 100% 100% Absorbed 

AFA 2002 214.164 100% 100% Absorbed 

AFA 2003 217.776 100% 100 % Absorbed 

AFA 2004 211.578 100% 100 % Absorbed 

AFA 2005 220.264 100% 100 % Absorbed 

AFA 2006 245.013 

Total 

* AFA 2006 = n+3 

1,521.450 million 

euro 

124.076 million 

euro 

50.64% 

1,400.512 

million euro 

92.05% 

2.31 million 

euro 

0.94% 

1,278.744 

million euro 

84.05% 

December 2009* 

Note: The quantum of allocations reflects the public value – EC contribution and national 

contribution 

On the whole programme, the total committed amount (1,400.512 million 

31


Euro), resulted in a degree of absorption of 92.05% at the end of 2008, as compared 

to the 2000-2006 allocations. 

Divided on measures, the situation of the commitments within SAPARD Programme 

is as follows (Table II.2): 

- on measure 1.1, the total contracted public value related to the contracts 

was of 351.458 million Euro, representing 25.09 % from the total committed 

amount of SAPARD Programme. 

- on measure 1.2, the total contracted public value was of 36.104 million 

Euro representing 2.58% from the total committed amount of SAPARD 

Programme. 



Programme. 



Programme. 

- on measure 3.2, the total contracted public value was of 0.086 million Euro 

representing 0.01% from the total committed amount of SAPARD 

Programme. 



Programme. 



Programme. 



Programme. 



Programme. 


representing 0.10% of the total committed amount of SAPARD Programme. 

32


MEASURE 

No. of projects 

contracted by 

31 st December 

2007 

2007 2008 

Committed 

amounts by 


2007 


No. of projects 

contracted by 


2008 

Table II.2 

Committed 

amounts by 


2008 


Measure 1.1 485 370.878 469 351.458 

Measure 1.2 20 37.613 20 36.104 

Measure 2.1 850 658.621 845 633.129 

Measure 3.1 2,018 251.088 1,952 238.506 

Measure 3.2* 4 0.187 4 0.086 

Measure 3.3* 47 0.869 47 0.217 

Measure 3.4 1,148 76.544 1,083 70.060 

Measure 3.5 117 74.263 114 66.677 

Measure 4.1 5 3.649 5 2.901 

Measure 4.2 10 1.537 10 1.374 

TOTAL 4,704 1,475.249 4,549 1,400.512 

* As regards Measures 3.2 and 3.3, the contracted values are lower than the ones previously <strong>report</strong>ed due to the 

fact that the previous <strong>report</strong>s considered as contracted the amount related to the entire implementation period 

(2007 – 2011). Taking into account that in the records kept by the Payment Accounting Unit and the Contracting 

Unit are considered as committed only the amounts related to 2007 and 2008, the Monitoring, Evaluation, 

Reporting Unit (MERU) adopted the same line of keeping records. MERU’s records shall be updated when the 

addenda related to each year are signed. 

As regards the payments executed to beneficiaries, the total amount registered at the 

end of 2008 (1,278.744 million Euro) is reflected by an absorption degree of 84.05% 

as compared to the 2000-2006 allocations. The situation divided on measures is the 

following (Table II.3): 









• In 2008 the payments for measure 3.2 started. The payments executed 

were in value of 0.029 million Euro, representing 0.002% of the total amount 










33



of the executed payments. 

MEASURE 

No. of 

payments by 


2007 

2007 2008 

Payments 

amount by 31 st 

December 2007 


No. of 

payments by 


2008 

Table II.3 

Payments 

amount by 31 st 

December 2008 


Measure 1.1 1,330 284.622 1,594 340.683 

Measure 1.2 6 1.346 41 17.853 

Measure 2.1 2,490 479.316 3,043 578.747 

Measure 3.1 2,837 198.658 3,169 229.412 

Measure 3.2 0 0 3 0.029 

Measure 3.3 47 0.182 48 0.187 

Measure 3.4 1,941 50.558 2,448 64.832 

Measure 3.5 66 6.8169 261 42.548 

Measure 4.1** 8 1.800 15 3.028 

Measure 4.2** 21 1.408 22 1.424 

TOTAL 8,746 1,024.714 10,644 1,278.744 

** As regards Measures 4.1 and 4.2, the value of the payments in lei is equal to the value of the 

contracts signed in lei. The difference occurs due to the fact that different ex-change rates were used 

in order to express the amount of the contracts and payments in euros. For the same reason there are 

differences between the total paid values expressed in euros and the values of the contracts 

expressed in euros. 

II. 2 Analysis of the progress recorded in the implementation of SAPARD 

Programme 

II. 2.1 Measure 1.1 „Improvement of processing and marketing of agricultural 

and fisheries products” – projects not affected by natural disasters 

During the 48 sessions held during August 2002 - July 2006, 736 projects were 

submitted out of which 466 were contracted having a total eligible approved value 

of 1,248,222.502 thousand LEI, respectively 345.143 million Euro. 

Approximately 43% of the projects approved under this measure concerns meat, 

meat products and eggs sector focussing mainly on the improvement of the 

processing standards for the mixed units (141 approved projects), for abattoirs (54 

approved projects), for swine units (2 approved project), for poultry processing units 

(4 approved projects), and for the improvement of the conditions for eggs storing 

and packaging (1 approved project). 

Milk and dairy products sector holds 20% out of all the approved projects under 

Measure 1.1, mainly envisaging units for milk processing for which 89 projects 

were approved. The diagram below (Diagram II.1) presents the stage of the 

34


submitted, approved and rejected projects under Measure 1.1 in the related period 

and according to the related sector: milk and dairy products (1), meat, meat 

products and eggs (2), fruits, vegetables and potatoes (3), wine (4), fishery (5), 

cereals (6), oil seeds (7). 

Number of submitted, rejected and approved projects on Measure 1.1 

Diagram II. 1 

350 

300 

305 

Submitted 

Rejected 

Approved 

250 

Number of Projects 

200 

150 

174 

202 

100 

92 

95 

70 

65 

64 

50 

41 45 

0 

11 

Milk and milk 

products 

21 

Meat products and 

eggs 

2 5 

Fruits, vegetables 

and potatoes 

Wine 

22 

18 

0 1 0 

Fish and fishery 

products 

1 

6 

4 0 3 0 0 0 

Textile Plants Cereals Oil seads Sugar 

Sub-measure 

In terms of the project objective, the approved projects have as main objective the 

improvement or the rationalization of the processing (approx. 45%) and the 

achievement of new investments in processing, storing and marketing capacities 

(approx 36%). The rest of 19% projects approved under Measure 1.1 have as 

objective the alignment to the European Union standards on food hygiene, food stuff 

quality and environment, improvement of product presentation and preparing, 

improvement and control of the production quality and the adoption of technologies 

for the new products, for improving the packaging, the storage capacities and for 

improving the monitoring quality and for a better use and removing of the by-products 

or residua resulted after processing and other. 

II. 2.1.1 Measure 1.1 „Improvement of processing and marketing for agricultural 

and fishery products” – projects affected by natural disasters 

During the 3 sessions held between May-July 2006, out of the 4 submitted projects, 3 

projects were contracted having a total eligible approved value of 22,296.097 

thousands LEI, respectively 6.315 million Euro. 

The 3 contracted projects belong to the cereals submeasure (2 projects) and meat, 

meat products and eggs submeasure (1 project), from the objective point of view of, 

these aim at improving the storage capacities, improving or rationalizing of the 

processing procedures and new investments in processing, storing and marketing 

capacities. 

35


Diagram presented below (Diagram II. 2) shows the situation of the submitted, 

approved and rejected projects on Measure 1.1, during the period in question, and 

taking into account the sector referred to: 

2,5 


(Affected by natural disasters) 

Diagram II. 2 

Submitted 

Rejected 

2 

2 

2 

2 

Approved 


1,5 

1 

1 

0,5 

0 

0 

0 0 

0 0 0 0 0 0 0 0 0 0 0 0 0 

0 0 0 0 0 0 0 

Milk and milk 

products 

Meat products and 

eggs 

Fruits, vegetables 

and potatoes 


Fish and fishery 

products 

Sub-measure 

Textile Plants Cereals Oil seads Sugar 

II. 2.2 Measure 1.2 „Improving the structures for quality, veterinary and plant 

health-control, for the quality of food stuffs and for consumer protection” 

During the 5 sessions held between May 2006 - October 2006, out of the 20 

submitted projects, 20 projects were contracted having a total eligible approved value 

of 129,428.687 thousand LEI, respectively 36.104 million Euro. 

Within this measure, the highest rate is held by the sanitary-veterinary control submeasure 

having 85% (17 approved projects), submeasure fitosanitary control has a 

weight of 10% (2 approved projects), and the submeasure Control of foods staff 

quality control has a weight of 5%. All the 20 contracted projects aim at construction 

extending, modernizing and endowing with equipment and specialized instruments 

(18 projects) and the IT national network, procurement of specific IT equipment (2 

projects). 

The diagram presented below (Diagram II. 3) shows the situation of the submitted, 

approved and rejected projects on Measure 1.2 during the period in question: 

36


Diagram II. 3 


18 

16 

17 

17 

Submitted 

Rejected 

Approved 

14 

12 


10 

8 

6 

4 

2 

0 

2 

2 

1 

1 

0 0 0 

Sanitary-veterinary control Plant-health control Food stuffs quality control 

Sub-measure 

II. 2.3 Measure 2.1 „Development and improvement of rural infrastructure” - 

projects not affected by natural disasters 

During the 9 sessions held between August - November 2002 and between April – 

August 2006 for Measure 2.1 Development and improvement of rural infrastructure, 

out of the 781 submitted projects, 762 projects were contracted having a total eligible 

approved value of 2,106,678.208 thousand LEI. 


rejected and contracted projects on sub-measure: 

Diagram II. 4 


450 

400 

389 

380 

Submitted 

Rejected 

Approved 

350 


300 

250 

200 

150 

278 

273 

100 

89 

87 

50 

0 

48 

Roads in rural areas 

41 

Drinkable water supply through rural area 

district networks 

7 

District system sewage in rural areas 

24 

0 

22 

Works of prevention and protection 

against floods 

Sub-measure 

37


Out of the total number of approved projects for Measure 2.1, approximately 50% are 

under the sub-measure Roads in rural areas (380 approved projects, 36% are under 

the sub-measure Drinkable water supply in centralised system in rural areas (273 

approved projects) and 11% are under the sub-measure Sewerage in centralised 

system in rural areas (87 approved projects) and 3% are approved projects for submeasures 

on prevention and protection works against floods (22 approved projects). 

93% of the projects under sub-measure Roads in rural areas have as objective the 

modernisation of the existing roads; 67% and respectively 82% of the approved 

projects under sub-measures Drinkable water supply in centralised system in rural 

areas and Sewerage in centralised system in rural areas have as objective the 

execution of new works. 

II. 2.3.1 Measure 2.1 „Development and improvement of rural infrastructure” – 

projects affected by natural disasters 

During the 4 sessions held between April – July 2006 for Measure 2.1 Development 

and improvement of rural infrastructure, out of the 96 submitted projects, 83 projects 

were contracted having a total eligible approved value of 213,989.272 thousand LEI, 

respectively 59.898 million Euro. 


rejected and contracted projects affected by natural disasters on sub-measures: 

Diagram II. 5 

80 



70 

60 

70 

60 

Submitted 

Rejected 

Approved 


50 

40 

30 

20 

22 

19 

10 

0 

10 


3 

Drinkable water supply through rural area 

district networks 

Sub-measure 

4 

4 

0 0 0 

District system sewage in rural areas 

Works of prevention and protection 

against floods 

0 

38


Out of the total number of approved projects affected by natural disasters under 

Measure 2.1, approximately 72% belong to roads in rural area sub-measure (60 

approved projects), 23% belong to water supply sub-measure (19 approved projects), 

5% are projects approved under sewerage sub-measure (4 approved projects). 

As compared to the case of roads sub-measure, under which, out of the total number 

of projects, 83% aimed at modernizing of the existing roads, in the case of water 

supply sub-measure out of the total number of approved projects 63% aim at 

executing of new works and as regards the sewerage sub-measure, 50% of projects 

aim at repairing the sewerage systems. 

II. 2.4 Measure 3.1 „Investments in agricultural holdings” - projects not affected 

by natural disasters 

During the 32 sessions held between December 2003 – July 2006, from the total 

number of submitted projects – 2,984 projects, 1,921 were contracted with a total 

eligible approved value of 834,372.636 thousand LEI, respectively 231.323 million 

Euro. 

Approximately 62% of the approved projects for this measure are for investments in 

sub-measure “Field crops” (1,190 approved projects), regarding mainly the 

procurement of machinery and independent equipments. 

Likewise, sub-measure “Dairy cows/buffalo cows” holds a quota of 12% (229 

contracts), out of the total number of approved projects for measure 3.1 most of the 

investments have as objective the building of stables for cattle and buffalo cows (71% 

of the investments under this submeasure, respectively 163 contracts) and only 12%, 

respectively only 28 contracted projects have as objective the procurement of 

animals with high-quality genetic value. 

With reference to the two sub-measures aforementioned, 55% of the total number, 

respectively 325 young farmers are beneficiaries of investments in field crops and 

13%, respectively 75 young farmers are beneficiaries of investments in dairy 

cows/buffalo cows. 

The diagram bellow (Diagram II.6) presents the situation of the submitted projects, 

approved and rejected ones for measure 3.1 during the reference period and 

depending on the field of activity: Field crops (1), Horticulture (2), Vineyards (3), Fruit 

cultivation (4), Greenhouses (5), Dairy cows/buffaloes (6), Cattle-rearing and 

fattening (7), Sheep/goats farms (8), Young muttons fattening farms (9), Pig farms 

(10), Poultry farms (11), Other vegetal and animal poultry breeding farms (12). 

39



Diagram II.6 

2.000 

1.800 

1.600 

1.750 

Submitted 

Rejected 

Approved 


1.400 

1.200 

1.000 

800 

600 

1.190 

525 

400 

200 

0 

35 

229 

169 

126 

84 76 70 63 82 72 

90 89 82 

44 

17 39 

1 3 3 4 17 0 16 1 

31 11 0 10 6 2 22 0 18 

Field crops Horticulture Vineyard Fruit tree 

farming 

Green 

Houses 

Milk animal 


Cattle 

breading and 

fattening 

Sub-measure 

Goats and 

sheep 


Young rams 


Swine Poultry Other type of 

vegetable, 

animals and 

poultry 


II. 2.4.1 Measure 3.1 „Investments in agricultural holdings”- projects affected by 

natural disasters 

During the 5 sessions held between March 2006 - July 2006, out of the 45 submitted 

projects, 31 projects were contracted having a total eligible approved value of 


The diagram presented below (Diagram II.7) shows the situation of the submitted, 

approved and rejected projects on Measure 3.1, for the period in question: 

Diagram II.7 



35 

30 

31 

27 

Submitted 

Rejected 

Approved 

25 


20 

15 

10 

11 

5 

0 

2 

1 

0 0 0 0 0 0 0 0 0 0 0 

Field crops Horticulture Vineyard Fruit tree 


Green 

Houses 

3 3 

Milk animal 


1 1 

1 1 

0 0 0 0 0 0 0 0 0 0 0 0 0 0 

Cattle 

breading and 


Sub-measure 

Goats and 

sheep 


Young rams 


Swine Poultry Other type of 

vegetable, 

animals and 

poultry 


Approximately 87% of the projects, out of the approved projects under this measure, 

40


refer to investments on field crops sub-measure (27 approved projects), mostly 

aiming at procuring of machines and independent equipment. 

II. 2.5 Measure 3.2 „Setting up of the producers groups” 

During the 5 sessions held between July 2006 - November 2006, 4 projects were 

submitted, these projects were contracted having a total eligible approved value of 

304.608 thousand LEI, respectively 0.086 million Euro. 

About 75% of the approved projects for this measure refer to the investments on 

submeasure Milk (3 approved projects). 

The diagram below (Diagram II.8) presents the stage of the projects submitted and 

approved on Measure 3.2 in the reference period: 


Diagram II.8 

4 

3 

3 

3 

Submitted 

Rejected 

Approved 

Completed 

3 


2 

2 

1 

1 

1 

1 

0 

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 

Cereals and 

Technical 

Plants 

Medicinal 

and aromatic 

plants 

Specialized 

crops 

(tobacco, 

hops) 

Vegetables 

and Potatoes 

Fruits, 

including 

grapes 

Wine grapes Mushrooms Flowers and 

decorative 

plants 

Sub-measure 

Milk Meat Eggs for Honey and 

consumption beekeeping 

products 

Fishery 

Products 

Forestry 

Products 

II. 2.6 Measure 3.3 „Agricultural production methods designed to protect the 

41


environment and maintain the countryside” 

During the 5 sessions held between July 2006 - November 2006, 48 projects were 

submitted, out of which 47 were contracted with a total eligible approved amount of 

764.719 thousand LEI, namely 0.217 million Euro. 

The 47 contracted projects aim at types of activities regarding the preserving the 

biodiversity by using the traditional agriculture practices 

The below diagram (Diagram II.9) presents the stage of projects submitted and 

approved on Measure 3.3, in the reference period. 


Diagram II.9 

50 

45 

47 

47 

Submitted 

Rejected 

Approved 

40 

35 


30 

25 

20 

15 

10 

5 

0 

1 1 

0 

Preservation of soil and protection against erosion 

0 0 0 

Preservation of biodiversity by traditional agriculture 

methods 

Organic Farming 

0 

Sub-measure 

II. 2.7 Measure 3.4 “Development and diversification of economic activities 

generating multiple activities and alternative income”-projects not affected by 


During the 32 sessions held between December 2003 – July 2006, from the total 

number of 1,658 submitted projects, 1,080 projects were contracted, with a total 

eligible approved value of 251,672.724 thousand LEI, respectively 69.610 million 

Euro. 

Approximately 60% of the approved projects for this measure is for investments in 

42


sub-measure “Rural Tourism” (643 approved projects). Likewise sub-measure “Other 

Activities” holds a quota of 31% (335 contracts), out of total number of approved 

projects for measure 3.4, most of the investments are made in bee-keeping (214 

contracts representing 64% out of the total number for this sub-measure) and to a 

smaller extent in snail and frog breeding (88 contracts representing 26% of the total 

number for this sub-measure). 

The diagram II 10 presents the situation of the projects submitted, approved and 

rejected for measure 3.4 during the related period and depending on the envisaged 

sub measure: Rural tourism (1), Other types of tourism in rural area (2), Handcraft 

activities (3), Aquaculture (4), Other activities (5) – Snails and Frogs, Beekeeping, 

Mushrooms, Wild berries and fruit bushes processing. 


Diagram II.10 

1000 

900 

800 

877 

Submitted 

Rejected 

Approved 

j ects 

700 

600 

643 

Number of Pro 

500 

400 

300 

200 

179 

159 

289 

214 

100 

0 

2 0 2 

Agriculture 

Services 

57 

Rural turism 

88 

64 

51 

51 

33 

9 2 

18 7 17 8 

24 

1 0 1 2 5 8 0 6 7 0 2 1 0 1 

Other types of 

turist activities 

in rural area 

Handcraft 

acrivities 

Acvaculture 

Snails and 

frogs 

Sub-measure 

Sericulture Bee keeping Mushrooms Wildberry 

fruits and tree 

fruits 

processing 

Medicinal and 

aromatic 

plants 


Processing at 

farm's level of 

the certified 

traditional 

and/ or 

organic 

products 

43


II. 2.7.1 Measure 3.4 „Development and diversification of economic activities, 

providing for multiple activities and alternative incomes” – projects affected by 


During the 2 sessions held between June - July 2006, out of the 7 submitted projects, 

3 projects were contracted having a total eligible approved value of 1,644.780 


The Diagram II.11 presented below shows the situation of the submitted, approved 

and rejected projects on Measure 3.4, for the period in question and taking into 

account the respective sub-measure: 

Diagram II.11 



5 

4 

4 

Submitted 

Rejected 

Approved 

4 


3 

3 

2 

2 

3 

2 

1 

1 

1 

0 

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 

Agriculture 

Services 

Rural turism 

Other types of 

turist activities 

in rural area 

Handcraft 

acrivities 

Acvaculture 

Snails and 

frogs 

Sub-measure 

Sericulture Bee keeping Mushrooms Wildberry 

fruits and tree 

fruits 


Medicinal and 

aromatic 

plants 


Processing at 

farm's level of 

the certified 

traditional and/ 

or organic 

products 

II. 2.8 Measure 3.5 „Forestry” 

44


During the 3 sessions held between May - July 2006, out of the 158 submitted 

projects, 114 projects was contracted having a total eligible approved value of 


Within this Measure the highest weight is represented by the investments in forestry 

roads, namely 68% (76 approved projects). 

The diagram II.12 presented below shows the situation of the submitted approved 

and rejected projects on Measure 3.5, for the period in question and taking into 

account the respective sub-measure: 


Diagram II.12 

140 

120 

116 

Submitted 

Rejected 

Approved 

100 


80 

60 

76 

40 

38 

34 

34 

20 

0 

3 

3 

0 1 0 1 

1 

Afforestation Nurseries Investments for the improvement of 

primary wood processing and 

marketing of forest products 

Forestry roads 

0 0 0 

Forest exploitation 

Sub-measure 

II. 2.9 Measure 4.1 „Improvement of vocational training” 

As regards measure 4.1, by the end of 2008, 5 projects with a total value of 

10,521.610 thousand LEI were approved meaning 2.901 million Euro; all these 

projects were contracted during 2005. 

The approved projects ensure improvement of vocational training for production 

practices, agriculture and forestry holdings management in the economic, technical 

and legal, diversification or reconverting of different activities in rural area, 

processing and marketing of agriculture and fishery products in compliance with 

the specific technologies, environment protection. 

45


II. 2.10 Measure 4.2 “Technical Assistance” 

By the end of 2008, 10 projects, with a total value of 5,214.570 thousand LEI, 

meaning 1.374 million Euro, were approved under Measure 4.2. 

The approved projects ensure technical assistance for: Monitoring Committee 

meeting (1 project), national seminars (2 projects), informative and publicity 

campaigns (2 projects), making preparatory studies for other measures (3 projects) 

and making the mid-term evaluation of the Programme (2 projects). 

II. 3 Expenditures by measures 

II. 3.1. Paid projects 

Until 31 st of December 2008, the amount of the paid projects on measures was of 

1,278.744 million Euro, respectively 254.030 million Euro for year 2008, out of which: 

• 340.683 million Euro for Measure 1.1, 56.060 million Euro for the year 2008, 

respectively. The amount of executed payments on 2008 shows off an 

increase with 20% as compared to the amount of the projects paid until 31 st 

of December 2007; out of the total of executed payments for Measure 1.1, 

the amount of 4.518 million Euro represents the executed payments for the 

projects affected by floods; 



increase with 1,226% as compared to the amount of the projects paid until 

31st of December 2007; 

• 578.747 million Euro for Measure 2.1, 99.431 million Euro for 2008, 

respectively. The amount of executed payments for year 2008 shows off an 

increase with 21% as compared to the value of the projects paid prior to 31st 

of December 2007; out of the total executed payments for Measure 2.1; the 

amount of 49.920 million Euro represents the amount of executed payments 

for the projects affected by floods; 

• 229.412 million Euro for Measure 3.1, 30.753 million Euro for 2008, 

respectively. The amount of the payments executed for year 2008 shows off 

an increase with 15% as compared to the value of the projects paid prior to 

31st of December 2007; out of the total executed payments for Measure 3.1, 

7.525 million Euro represents the value of the payments executed for the 

projects affected by disasters; 

• 0.029 million Euro for Measure 3.2, payments executed in 2008; 



increase with 2% as compared to the amount of the projects paid until 31st 

of December 2007; 

• 64.832 million Euro for Measure 3.4, 14.273 million Euro for year 2008, 

respectively. The amount of the payments executed for year 2008 shows off 

an increase of 28% as compared to the amount of projects paid prior to 31st 

of December 2007; out of the total of executed payments for Measure 3.4, 

0.420 million Euro represents the amount of payments executed for the 

46


projects affected by floods; 



increase with 524% as compared to the amount of the projects paid until 

31st of December 2007; 



increase with 68% as compared to the amount of the projects paid until 31st 

of December 2007; 

• 1.424 million Euro for Measure 4.2, 0.016 million Euro for 2008, respectively. 

The amount of the payments executed for year 2008 shows off an increase 

of 1% as compared to the amount of projects paid prior to 31 st of December 

2007. 

The diagram II.13 presents the comparative stage by measures. The values are 

expressed in million Euro. 

Diagram II.13 

600,00 

Diagram on payments comparative stage by measures 

578,75 

2003-2008 

2008 

500,00 

400,00 

340,68 

Milions EURO 

300,00 

229,41 

200,00 

100,00 

56,06 

17,85 

16,51 

99,43 

30,75 

0,03 

0,03 

0,19 

0,00 64,83 

14,27 

42,55 

35,73 

3,03 

1,23 

1,42 

0,02 

0,00 

Measure 1.1 Measure 1.2 Measure 2.1 Measure 3.1 Measure 3.2 Measure 3.3 Measure 3.4 Measure 3.5 Measure 4.1 Measure 4.2 

As regards the distribution of the overall expenditures by each submeasure the 

situation is presented below. The amounts are expressed in million Euro. 

47


Diagram II.14 

M EASURE 1.1 - Value of paid projects by submeasures 

174,67 

Value of paid projects (MEURO) 

180,00 

160,00 

140,00 

120,00 

100,00 

80,00 

49,99 

60,00 

35,41 

29,70 31,69 

40,00 

10 , 5 0 

20,00 

3,47 

0,00 0,73 

0,00 

Meat pr oducts and 

Milk and milk 

Cer eal s Oi l seeds Wi ne Fr ui ts, vegetabl es Fi sh and f i sher y 

Sugar 

Textil e pl ants 

eggs 

pr oducts 

and potatoes 

pr oducts 

Diagram II.15 



3,00 

2,56 

Value of paid projects 

(MEURO) 

2,50 

1, 9 6 

2,00 

1,50 

1,00 

0,50 

0,00 

0,00 

0,00 0,00 

0,00 0,00 0,00 

0,00 

Meat pr oducts and 

eggs 

Milk and milk 

pr oducts 

Cer eal s Oi l seeds Wi ne Fr ui ts, vegetabl es Fi sh and f i sher y 

and potatoes pr oducts 

Sugar 

Textil e pl ants 

Diagram II.16 

48


M EASURE 1.2- Value of paid projects by submeasures 

14,92 

Value of paid project s (M EURO) 

16,00 

14,00 

12,00 

10,00 

8,00 

6,00 

4,00 

1,31 

1,62 

2,00 

0,00 

Sanitary-vet erinary cont rol Plant -healt h cont rol Food st uff s qualit y cont rol 

Diagram II.17 

MEASURE 2.1 - Value of paid projects by submeasures 

300,00 

274,34 

Value of paid project s (MEURO) 

250,00 

200,00 

161,69 

150,00 

100,00 

70,26 

50,00 

22,54 

0,00 


Drinkable wat er supply in 

cent ralized net work in rural 

areas 

Sewerage in cent ralized syst em 

in rural areas 

Works of prevent ion and 

prot ect ion against f loods 

Diagram II.18 

49


MEASURE 2.1 - Value of paid project s by submeasures 


45,00 

39,77 

Value of paid project s (MEURO) 

40,00 

35,00 

30,00 

25,00 

20,00 

15,00 

9,08 

10,00 

5,00 

1,06 

0,00 

0,00 


Drinkable wat er supply in 

cent ralized net work in rural 

areas 

Sewerage in cent ralized syst em 

in rural areas 

Works of prevent ion and 

prot ect ion against f loods 

Diagram II.19 

MEASURE 3.1 - Value of paid project s by submeasures 

120,00 

106,34 


100,00 

80,00 

60,00 

40,00 

28,45 

28,49 26,41 

2,69 

20,00 

3,14 

7,74 

5,33 5,45 

3,16 2,72 1,96 

0,00 

Fi el d cr ops Hor ticul tur e Vi neyar ds Fr ui t gr owi ng Gr eenhouses Mi l k Cattle- 

ear i ng and farms f atteni ng 

vegetabl e, 

Sheep/ goats Young r ams Pigs f ar ms Poultr y f ar ms Other type of 

(out of which 

cows/buffalor 

f l or i cul tur e 

cows f ar ms fattening 

ani mal s and 

1,5%) 

poultr y 


Diagram II.20 

50




8,00 


7,00 

6,52 

6,00 

5,00 

4,00 

3,00 

2,00 

1,00 

0,00 

0,00 

0,00 

0,11 

0,63 

0,00 

0,00 

0,00 

0,00 

0,00 

0,27 

0,00 

Fi el d cr ops 

Hor ti cul tur e Vi neyar ds Fr ui t gr owi ng Gr eenhouses Milk Cattle- 

and farms f atteni ng 

Sheep/ goats Young r ams 

(out of whi ch 

cows/buffalorearing 

floriculture 

cows f ar ms f attening 

1,5%) 

Pigs f ar ms Poultr y f ar ms Other type of 

vegetabl e, 

ani mal s and 

poul tr y 


Diagram II.21 

MEASURE 3.2- Value of paid projects by submeasures 


0,04 

0,03 

0,03 

0,02 

0,02 

0,01 

0,01 

0,00 

Cereals and 

Technical 

Plants 

Vegetables 

and 

Potatoes 

Wine grapes M ushrooms M ilk M eat 

51


Diagram II.22 

M EASURE 3.3- V alue of paid projects by submeasures 


0,22 

0,19 

0,17 

0,12 

0,07 

0,00 

0,00 

0,02 

-0,03 

Preservation of soil and 

protect ion against erosion 

Preservat ion of biodiversity by 

traditional agriculture met hods 

Organic Farming 

Diagram II.23 

MEASURE 3.4 -Value of paid project s by submeasures 

60,00 

Val ue of pai d pr oj ects (MEURO) 

50,89 

50,00 

40,00 

30,00 

20,00 

10,00 

0,20 

4,77 

1,17 

1,49 

0,87 

0,02 

2,61 

1,60 

0,56 

0,19 

0,04 

0,00 

Agr i cul tur al 

ser vices 

Rur al 

tourism 

Other types Handi cr af t Aquacul tur e Snai l s and Ser i cul tur e Bee keepi ng Mushr ooms Wi l dber r y 

of tour i sm 

f r ogs 

f r ui ts and 

tr ee f r ui ts 

pr ocessi ng 

Medi ci nal 

and ar omatic 

pl ants 

pr ocessi ng 

Pr ocessi ng 

at f ar m's 

level of the 

certified 

tr adi tional 

pr oducts 

52 

Diagram II.24


MEASURE 3.4 -Value of paid projects by submeasures 


0,45 

0,42 

Val ue of pai d pr oj ects (MEURO) 

0,40 

0,35 

0,30 

0,25 

0,20 

0,15 

0,10 

0,05 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

Agr i cul tur al 

ser vices 

Rur al 

tourism 

Other types Handi cr af t Aquacul tur e Snai l s and Ser i cul tur e Bee keepi ng Mushr ooms Wi l dber r y 

of tour i sm 

frogs 

fruits and 

tree f ruits 

pr ocessi ng 

Medi ci nal 

and ar omatic 

pl ants 

pr ocessi ng 

Pr ocessi ng 

at f ar m's 

level of the 

certified 

traditional 

pr oducts 

Diagram II.25 

MEASURE 3.5-Value of paid projects by submeasures 


40,00 

36,04 

35,00 

30,00 

25,00 

20,00 

15,00 

10,00 

6,39 

5,00 

0,09 0,02 

0,00 

0,00 

Afforestation Nurseries Investments for the 

improvement of 

primary wood 

processing and 

market ing of f orest 

products 

Forest ry roads 

Forest exploitat ion 

53 

Diagram II.26


MEASURE 4.1- Value of paid projects 

3,50 

3,03 


3,00 

2,50 

2,00 

1,50 

1,00 

0,50 

0,00 

Improving of vocational training 

MEASURE 4.2 - Value of paid projects 

Diagram II.27 

1,60 

1,42 


1,40 

1,20 

1,00 

0,80 

0,60 

0,40 

0,20 

0,00 

Technical Assistance 

II. 3.2. Approved projects 

54


Until December 31 st 2008, 4.414 projects were approved with a public value of 

1,322.391 million Euro, on the investment measures. Out of these projects 10.56% 

represent contracts under Measure 1.1, 0.45% represents contracts under Measure 

1.2, 17.26% represent contracts under Measure 2.1, 43.52% are projects contracted 

under Measure 3.1, 0.09% are projects contracted under Measure 3.2, 1.07% are 

projects contracted under Measure 3.3, 24.47% are projects contracted under 

Measure 3.4 and 2.58% are projects contracted under Measure 3.5. 

The public contracted value, afferent to the contracts on Measure 1.1, was of 

345.143 million Euro, representing 26.10% out of the total commitments of the 

PARDF. On Measure 1.2 the public contracted value was of 36.104 million Euro i.e. 

2.73% out of the total commitments of the PARDF. On Measure 2.1, the public 

contracted value was of 573.231 million Euro i.e. 43.35% out of the total 

commitments of the PARDF. On Measure 3.1, the public contracted value was 

231.323 million Euro i.e. 17.49% out of the total commitments. On Measure 3.2, the 

public contracted value was 0.086 million Euro i.e. 0.01% out of the total 

commitments. On Measure 3.3, the public contracted value was 0.217 million Euro 

i.e. 0.02% out of the total commitments. On Measure 3.4, the public contracted value 

was 69.610 million Euro i.e. 5.26% out of the total commitments of the PARDF. On 

Measure 3.5 the public contracted value was 66.677 million Euro i.e. 5.04% out of the 

total commitments. 

At the same time, by 31 December 2008, a number of 120 projects affected by 

natural disasters were approved having a public value of 73.846 million Euro on the 

investments measures. Out of these projects, 2.50% represent contracts on Measure 

1.1, 69.17% represent contracts on Measure 2.1 and 25.83% represent contracts on 

Measure 3.1, respectively 2.50% are projects contracted on Measure 3.4. 

The contracted public value afferent to the contracts affected by disasters on 

Measure 1.1 was of 6.315 million Euro, representing 8.55% from the total PARDF 

commitments. On Measure 2.1, the public contracted value was of 59.898 million 

Euro, respectively 81.11% from the total PARDF commitments. On Measure 3.1, the 

public contracted value was of 7.183 million Euro, respectively 9.73% from the total 

commitments and on Measure 3.4, the public contracted value was of 0.450 million 

Euro, respectively 0.61% from the total PARDF commitments. 

Details concerning the approved projects (project code, beneficiary, project value) 

are included in the Annex 3 “Approved Projects”. 

55


Table II.4 Summary table of approved projects 

Region 

1 North- 

East Iasi 

2 South 

East 

Constanta 

No. 

M 1.1 M 1.2 M 2.1 


value (EURO) 

No. 


value (EURO) 

No. 

Contracted value 

(EURO) 

No. 

M 3.1 M 3.2 M 3.3 M 3.4 

Contracted Contracted 


No. value No. value No. 

value (EURO) 

(EURO) 

(EURO) 


value (EURO) 

74 48.163.233,08 3 5.774.260,79 203 156.604.367,36 309 34.887.545,62 0 0,00 0 0,00 180 12.398.983,45 17 7.583.449,27 

81 51.344.138,78 2 3.954.047,25 125 88.341.828,77 476 45.633.305,64 1 10.781,46 0 0,00 87 4.892.082,66 0 0,00 

No. 

proj 

ects 

M 3.5 


value (EURO) 

3 South 

Muntenia 

71 59.434.178,95 2 3.899.125,15 147 115.334.036,41 366 53.382.336,39 0 0,00 0 0,00 73 4.481.801,58 2 493.422,63 

Targoviste 

4 South 

West 

Oltenia 

29 25.408.513,67 2 3.570.292,30 104 71.122.556,63 122 17.111.642,91 0 0,00 0 0,00 148 6.288.989,21 5 2.970.918,36 

Craiova 

5 West 

Timisoara 

44 43.489.929,87 2 3.668.794,11 56 41.116.122,14 218 26.280.812,65 0 0,00 0 0,00 89 5.716.802,27 18 11.771.021,15 

6 North - 

West Satu 58 31.641.958,76 2 3.135.310,80 59 46.163.791,86 242 29.587.482,19 0 0,00 0 0,00 145 9.684.441,63 34 22.169.692,41 

Mare 

7 Centre 

Alba Iulia 

81 58.352.273,52 3 5.631.578,93 61 48.642.272,70 167 21.122.523,55 3 75.114,60 47 216.864,73 347 25.600.960,68 38 21.688.179,90 

8 

Bucharest 28 27.309.166,61 4 6.470.111,27 7 5.906.045,86 21 3.317.410,55 0 0,00 0 0,00 11 545.998,69 0 0,00 

Ilf ov 

TOTAL 466 345.143.393,25 20 36.103.520,61 762 573.231.021,72 1.921 231.323.059,50 4 85.896,06 47 216.864,73 1.080 69.610.060,17 114 66.676.683,72 

* Euro conversion was made at the exchange rate on the date of signing the selection <strong>report</strong>. 

56


Table II.5. Summary table of projects affected by natural disasters 


No. projects 

M 1.1 M 2.1 M 3.1 


(EURO) 

No. projects 


(EURO) 

No. projects 


(EURO) 

M 3.4 


No. projects 

(EURO) 

1 North-East Iasi 0 0,00 17 12.525.944,83 2 233.900,35 0 0,00 

2 South East 

Constanta 

3 South Muntenia 

Targoviste 

0 0,00 12 6.230.830,22 0 0,00 0 0,00 

0 0,00 17 13.238.770,04 2 739.400,66 0 0,00 

4 South West 

Oltenia Craiova 

1 319.003,84 16 11.876.574,87 1 45.862,94 0 0,00 

5 West Timisoara 1 2.998.638,42 1 999.896,96 23 5.303.128,49 0 0,00 

6 North -West 

Satu Mare 

0 0,00 8 6.305.676,76 0 0,00 0 0,00 

7 Centre Alba Iulia 1 2.997.437,24 9 6.425.418,26 3 861.025,94 3 450.000,00 

8 Bucharest Ilfov 0 0,00 3 2.294.682,76 0 0,00 0 0,00 

TOTAL 3 6.315.079,50 83 59.897.794,69 31 7.183.318,39 3 450.000,00 

57


II. 3.3 Finalized projects 

By December 31 st 2008, 3,965 projects were finalized, out of which 430 on 

Measure 1.1, out of which one finalized project being projects affected by natural 

disasters, 6 projects were finalized on Measure 1.2, 749 projects were finalized on 

Measure 2.1 out of which 50 finalized projects being projects affected by natural 

disasters, 1,807 projects on Measure 3.1 out of which 31 finalized projects being 

projects affected by natural disasters, 902 projects on Measure 3.4, out of which 2 

finalized projects being projects affected by natural disasters, 56 projects on 

Measure 3.5, 5 projects on Measure 4.1 and 10 projects were finalized on Measure 

4.2. 

Out of 3,965 projects, 777 projects were finalized in 2008 as follows: 120 projects 

under Measure 1.1, 6 projects under Measure 1.2, 148 projects under Measure 

2.1, 184 projects under Measure 3.1, 289 projects under Measure 3.4, 26 projects 

under Measure 3.5, 3 projects under Measure 4.1 and 1 projects under Measure 

4.2. 

At the end of 2008, the following situation resulted for the entire program on the 

finalized projects: 

‣ On Measure 1.1, the finalized projects on sub measures are as follows: 

• Milk and dairy products – 89 projects; 

• Meat, meat products and eggs – 182 projects; 

• Fruit, vegetables and potatoes – 39 projects; 

• Wine - 42 projects; 

• Fish – 16 projects; 

• Textile Plants – 1 project; 

• Cereal – 58 projects, out of which 1 project is affected by natural disasters; 

• Oil seeds – 3 projects. 


• Sanitary-veterinary control – 4 projects; 

• Phyto-sanitary control – 1 project; 

• Food quality control –1 project. 

‣ On Measure 2.1, the concluded projects on sub measures are as follows: 

• Roads in the rural area – 396 projects, out of which 40 projects are 

affected by natural disasters; 

• Supplying with drinking water through centralized networks in the rural 

areas – 259 projects, out of which 10 projects are affected by natural 

disasters; 

• Sewerage in centralized system in the rural areas – 77 projects; 

• Works for floods prevention and protection – 17 projects. 


• Field crops – 1,197 projects, out of which 27 projects are affected by 

natural disasters; 

• Horticulture – 76 projects; 

• Wine-growing – 62 projects; 

58


• Fruit growing – 71 projects; 

• Greenhouses – 42 projects; 

• Milking animals – 163 projects, out of which 3 projects are affected by 


• Cattle-rearing and fattening – 13 projects; 

• Sheep/goats breeding – 15 projects; 

• Young mutton fattening – 8 projects; 

• Pigs – 73 projects; 

• Poultry – 73 projects; 

• Other vegetal and animal poultry breeding farms – 14 projects, out of 

which one project is affected by natural disasters. 


• Agriculture Services – 2 projects; 

• Rural tourism – 502 projects, out of which 2 projects are affected by 


• Other types of tourism activities in the rural space – 49 projects; 

• Handcraft – 17 projects; 

• Aquaculture – 13 projects; 

• Frogs and Snails – 81 projects; 

• Sericulture – 1 project; 

• Apiculture – 207 projects; 

• Mushrooms – 21 projects; 

• Wild berry fruits and wild berry bushes processing – 6 projects; 

• Medicinal and aromatic plants – processing – 2 projects; 

• Processing at farm's level of the certified traditional and/or organic 

products – one project. 


• Afforestation – 3 projects; 

• Nurseries – 1 project; 

• Investments for the improvement of primary wood processing and 

marketing of forest products – 30 projects; 

• Forestry roads – 22 projects. 

‣ On Measure 4. 1 5 projects were finalized. 

‣ On Measure 4.2, the finalized projects on category of expenditures are as 

follows: 

• Information and promotion campaign – 2 projects; 

• Seminars – 2 projects; 

• Monitoring Committee Meeting – 1 project; 

• Preparative studies for other measures – 3 projects; 

• Mid term evaluation – 2 projects. 

We mention that there were taken into consideration as finalized projects only the 

projects 100% implemented and to which the final payment was executed. 

59


Detailed information is included in the annexed monitoring tables (Annex No. 2) 

which contain the monitoring indicators. 

II. 3. 4 Sensitive sectors 

Situation of the projects financed related to investments in the sensitive sectors under 

the SAPARD Programme is presented in the below table (Table II.6): 

60


Table II.6 

Period August 1 st 2002 – December 31 st 2008 

Sensitive sectors - for investments in improving the processing and marketing of 

agricultural and fishery products 

Sector Activity/product Reference unit 

Meat 

Capacity of slaughter house 

for: 

National 

capacity 1 in 

2004 

Capacity 

supported under 

the SAPARD 

Programme 

starting with 

2000* 

Total 000 tone/year 728.500 421.050 

mixed 000 tone/year 203.913 

swine 000 tone/year 39.784 

cattle 000 tone/year 33.922 

sheep 000 tone/year 2.700 

poultry 000 tone/year 140.731 

Eggs Capacity of packing Million eggs/year 

Capacity of global use 000 hl/year 18,667.700 4,460.888 

Capacity of producing drinking milk 000 hl/ year 962.989 

Milk 

Centrifuged 

Capacity of producing powder 

000 tons/year 0.322 

milk 

milk out of which: 

Whole milk 000 tons/year 0.326 

Capacity of producing cheese 

(on range of products) 


Capacity of producing butter 000 tons/year 1.952 

Capacity of producing casein 000 tons/year 0.000 

Capacity of producing churn powder 000 tons/year 1.080 

milk, out of which: liquid 000 tons/year 256.830 

Total of national 

capacity starting 

with 2000 3 

61


Starch 

Milling 

Capacity of producing starch 

from: 

Capacity of milling for: 

potatoes 000 tons/ year 0.000 

corn 000 tons/ year 0.000 

wheat 000 tons/ year 0.000 

other cereal 000 tons/ year 0.000 

ordinary 

wheat 


hard wheat 000 tons/ year 0.000 

rice 000 tons/ year 0.000 


Malt Capacity of producing malt 000 tons/ year 0.000 

Capacity per 

Sugar 


Capacity of producing sugar: 

Capacity of producing the wine 

out of which: 

day 

tons/day 10.885 0.000 

Agricultural 000 tons/seed 

campaign age 

0.000 

Total hectolitres/ year 19,195,000.000 464,644.589 

Vine – noble 

breed hectolitres/ year 277,890.019 

(QWPSR 4 ) 

Table wine hectolitres/ year 186,754.570 

* The new setting up capacities and capacity increases within the modernization projects are taken into consideration. The mentioned capacities in this column are different from those included 

in table 6.a.1.1. Within table 6.a.1.1, total capacities involved in the contracted projects are accounted, whereas in this table, the total involved capacities are accounted with regard to 

contracted projects for new investments. As regards modernization, only the difference between the capacity to be obtained at the project finalization and the capacity existing at the moment of 

SAPARD funds request is accounted. 

1 

- "Capacity" to be used shall be the same for the related columns. 

2 

– If for 2000 any information is not available, to be included the most recent data, specifying the reference year. 

3 

– To be mentioned the capacity supported under the SAPARD Programme, increase of capacity realized without SAPARD aid and closing of capacities. 

62


Table II.7 

Sensitive sectors - for investments in improving the processing and marketing of 

agricultural and fishery products – projects affected by natural disasters 

Period April 1 st 2006 – December 31 st 2008 

Sector Activity/product Reference unit 

National 

capacity 1 

in 2004 

Capacity 

supported 

under the 

SAPARD 

Programme 


2000* 

Total of 

national 

capacity 


2000 3 

Meat 

Capacity of slaughter house 

for: 

Total 000 tone/year 11.250 

mixed 000 tone/year 11.250 

swine 000 tone/year 0.000 

cattle 000 tone/year 0.000 

sheep 000 tone/year 0.000 

poultry 000 tone/year 0.000 

Eggs Capacity of packing Million eggs/year 

Capacity of global use 000 hl/year 0.000 

Capacity of producing drinking milk 000 hl/ year 0.000 

Centrifuged 

Milk 

Capacity of producing powder 


milk 

milk out of which: 

Whole milk 000 tons/year 0.000 

Capacity of producing cheese 

(on range of products) 


Capacity of producing butter 000 tons/year 0.000 

Capacity of producing casein 000 tons/year 0.000 

Capacity of producing churn powder 000 tons/year 0.000 

milk, out of which: liquid 000 tons/year 0.000 

63


Starch 

Capacity of producing starch 

from: 

potatoes 000 tons/ year 0.000 

corn 000 tons/ year 0.000 

wheat 000 tons/ year 0.000 


ordinary 

wheat 


Milling Capacity of milling for: 

hard wheat 000 tons/ year 0.000 

rice 000 tons/ year 0.000 


Malt Capacity of producing malt 000 tons/ year 0.000 

Sugar Capacity of producing sugar: 

Capacity per 

tons/day 0.000 

day 

Agricultural 000 tons/seed 

0.000 

campaign age 

Total hectolitre/ year 0.000 


Vine – noble 

Capacity of producing the wine 

breed 

out of which: 

(QWPSR 4 ) 

hectolitre/ year 0.000 

Table wine hectolitre/ year 0.000 

* The new setting up capacities and capacity increases within the modernization projects are taken into consideration. The mentioned capacities in this column are different from 

those included in table 6.a.1.1. Within table 6.a.1.1, total capacities involved in the contracted projects are accounted, whereas in this table, the total involved capacities are 

accounted with regard to contracted projects for new investments. As regards modernization, only the difference between the capacity to be obtained at the project finalization 

and the capacity existing at the moment of SAPARD funds request is accounted. 

1 

- "Capacity" to be used shall be the same for the related columns. 

2 

– If for 2000 any information is not available, to be included the most recent data, specifying the reference year. 

3 

– To be mentioned the capacity supported under the SAPARD Programme, increase of capacity realized without SAPARD aid and closing of capacities. 

64


II. 3.5 Sanctioned and cancelled projects 

By December 31 st 2008, according to the official data, 806 projects were cancelled 

and sanctioned due to irregularities, out of which 99 projects on Measure 1.1, 2 

projects on Measure 1.2, 228 projects on Measure 2.1, 168 projects on Measure 3.1, 

45 projects on Measure 3.3, 247 projects on Measure 3.4, 6 projects on Measure 3.5, 

2 projects on Measure 4.1 and 9 projects on Measure 4.2. 

On Measure 1.1 “Improvement of processing and marketing of agricultural and 

fishery products”, 50 financing contracts were cancelled, at the beneficiaries’ request 

or from various reasons. For 11 projects payment had been executed, of 6,706.532 

thousand LEI, prior to contract ceasing. In 2008, 16 projects on this measure were 

cancelled. 

Other 49 projects were sanctioned (out of which 28 projects were sanctioned during 

2008) due to some irregularities in implementing the projects, the sanctions value 

being of 19,025.688 thousand LEI. 

On the Measure 1.2 „Improvement the structures for carrying out the veterinary, and 

phyto-sanitary quality control for food stuff and consumers’ protection”, 2 projects 

were sanctioned (out of which one project was sanctioned during 2008), due to some 

irregularities found during the project’s implementation in amount of 0.220 thousand 

LEI. 

On Measure 2.1 “Development and improvement of rural infrastructure”, 19 financing 

contracts with PARDF were cancelled due to various reasons or at the beneficiaries’ 

request. For 6 projects payments had been executed prior the contract’s ceasing, in 

amount of 19,027.939 thousand LEI. In 2008, 5 projects were cancelled on this 

Measure. 


2008) due to some irregularities in implementing the projects, the sanctions value 

being of 31,321.520 thousand LEI. 

On Measure 3.1 “Investments in agricultural holdings”, 132 financing contracts with 

PARDF were cancelled due to various reasons or at the beneficiaries’ request; 66 

beneficiaries required the projects’ cancellation in 2008. 

For 9 projects payment had been executed prior to contract’s ceasing, in amount of 

1,507.078 thousand LEI. 


2008), the sanctions having a total value of 3,665.483 thousand LEI. 

On Measure 3.3 “Agricultural production methods designed to protect the 

environment and maintain the countryside”, 45 projects were sanctioned during 2008, 

the sanctions having a total value of 580.126 thousand LEI. 

65


On Measure 3.4 „Development and diversification of economic activities, providing 

for multiple activities and alternative incomes”, 188 financing contracts with PARDF 

were cancelled due to various reasons or at the beneficiaries request; 65 

beneficiaries required the contracts cancellation in 2008. For 32 projects payments 

had been executed prior to contracts ceasing, in amount of 4,104.564 thousand LEI. 


2008), due to irregularities found during the projects implementation, the sanctions 

having a total value of 5,508.790 thousand LEI. 

On Measure 3.5 ”Forestry” 4 contracts were cancelled at the beneficiary’s request for 

which no payments had been executed prior to the date of contract’s ceasing, 3 

projects were cancelled during 2008 

2 projects were sanctioned during 2008, the sanctions having a total value of 127.704 

thousand LEI. 

On Measure 4.1 „Improvement of vocational training” 2 contracts were cancelled. 

As regards Measure 4.2 “Technical Assistance”, 9 projects were cancelled. 

Following the discussions of the 17 th meeting of the SAPARD Programme Monitoring 

Committee held on 9th of July 2009, regarding the content of the Annual 

Implementation Report for SAPARD Programme for 2008, the Managing Authority for 

SAPARD Programme synthesized the causes for the significant number of contracts 

cancelled from the cut off day until the date of the <strong>report</strong>s presented during the last 

MC reunion. 

Following the collection of the data held by the Agency’s technical structures, it was 

found that from the completion of the contracting process under the SAPARD 

Programme (31 st of July 2007) until now, 271 contracts have been cancelled totalling 

the amount of 45,946,435.80 Euro. 

The centralization includes both information supplied by the Romanian authorities 

responsible for the implementation of the SAPARD Programme, respectively the 

Paying Agency for Rural Development and Fishery, the Monitoring Committee 

members and representatives of programme beneficiaries. 

Thus, the common causes of projects cancellation which have been identified were 

highlighted by the members of the Monitoring Committee and the PARDF. The 

majority of cases relates to the inability of the beneficiaries to finalize the project, as 

well as to the administrative problems faced by the beneficiaries. 

The main factors identified by the Romanian authorities who led to the cancellation of 

the above mentioned projects are classified as follows: 

I. Causes identified by the Paying Agency for Rural Development and Fishery 

‣ the beneficiaries exceeded the execution deadline of the investment due to the 

lack of co-financing: 

66


• lack of own financing; 

• non granting of credits by the financial institutions or non granting the 

guarantee by the guaranteeing funds; 

‣ non-compliance with the contractual duties by the beneficiaries: 

• exceeding the deadline for submitting the acquisition dossiers; 

• modifying the technical solution, as compared to the one initially provided in 

the financial application, without the approval of the contracting authority; 

• non-compliance with the technical project during the implementation; 

• non-compliance during the implementation of the contract of the eligibility 

criteria, one of the most important being the lack of land or buildings 

ownership, some beneficiaries submitting false documents or contracts that 

have lost their validity in time; 

• non-compliance with the eligibility and selection criteria and the acquisition 

procedure during the ex-post monitoring period. During the monitoring 

period of the projects, when the experts of the Control and Antifraud 

Directorate carried out on-the-spot checks, it was found that the 

beneficiaries had not observed the contractual obligations concluded with 

SAPARD Agency (i.e. they had not observed either the schedule for works’ 

execution in compliance with the approved technical project, or the works 

according to the technical project); 

‣ due to the current economic context, to the economic crisis, the companies which 

have received the community funds under SAPARD Programme and have 

committed by contract to function during a minimum of 5 years (monitoring 

period), are at present unable to continue their activity; 

‣ at the same time, there are beneficiaries who are unable to implement the project 

due to financial problems, as they do not have sufficient funds any more for 

completing the project, the new credit conditions of banks being too harsh, and 

the interest and exchange rates too high. Therefore, the projects were cancelled 

at the request of the beneficiary, with parties’ agreement; 

‣ litigations (i.e. between the manufacturer and supplier, between the beneficiary 

and the bank, property litigations, enforcement, cancellation of the building permit 

concluded by the court). 

‣ the beneficiary exceeded the contractual deadline for the procurement procedure 

under Measure 3.1; 

‣ the beneficiary entered into the insolvency and bankruptcy proceedings. 

Note: A part of the cancellation causes presented above have been identified also by 

PARDF, as well as by the beneficiaries’ representatives and the MC members. 

67


II. Causes identified by the beneficiaries of the SAPARD Programme and the 

MC members 

‣ problems caused by the relation between the beneficiary and the builder, 

respectively: 

• non-compliance with the execution deadlines; 

• financial additional requests, compared with the signed contract, in order to 

continue to accomplish the work; 

• the conditioning of the beneficiaries to make advance payments in order to 

continue the works, even though the contract stipulated that the payments 

can be made based on the work situations approved by the beneficiaries. 

‣ higher projects costs compared with the ones initially estimated in the project 

budget and frequently above the possibility of the beneficiaries due to: 

• the acquisition of services, goods and works at higher prices than the 

market prices and the budget of the projects; 

• the big periods between the submission of the project, signing of the 

financing contract, beginning of the project and conclusion of the project; 

• the depreciation of the Ron compared with Euro. 

‣ the beneficiaries applied for support under the SAPARD Programme and after 

the approval of the projects they were not able to financially sustain them (i.e. 

farmers with small holdings, of 5-10 ha, purchased agricultural equipments with 

high values); 

‣ the existence of large or very large constructions projects (processing units, 

warehouses, etc.) which have far exceeded the amount of the investment, the 

initial assessment being incorrectly carried out; 

‣ over evaluation of investment, income and expenditures related to the projects by 

certain consultancy firms; 

‣ the delays in what concerns the payments to the beneficiaries led, in most of the 

case, to the inability of the beneficiaries to pay the suppliers of equipments and 

the builders; 

‣ high bureaucracy existing within the institutions involved in implementation of 

SAPARD, as well as the erroneous interpretations of the law; 

‣ big delays in the implementation of the contracts, determined by objective 

reasons or the weak managerial capacity of the beneficiaries; 

‣ lack of the experience of the beneficiaries regarding the implementation projects 

with mandatory and strict rules; 

‣ existence of bad management in various stages of project implementation; 

‣ acquisition problems – differences regarding the prices of the offers as a 

consequence of the surpass of the validity period of the offer, slow receiving of 

the offers due to the high request; 

‣ high criteria regarding the processing capacities in the animal husbandry and 

food industry field, favouring those with a lot of money; 

68


‣ the state did not provided a clear policy related to the SAPARD Programme in 

order to support the small farmers organized in associations for the efficient 

development of the production units; 

‣ the gap between the development of the industry and animal husbandry (the 

supplier of raw materials) represented another cause on the cancellations of 

SAPARD projects. Even if Romania has big slaughter capacity, a problem 

remains the decrease of the livestock (cattle, pigs) and this led to the 

dependence of meat import and increased the competition for the purchase of an 

insufficient number of animals, resulting higher costs, reduced margins and 

removal of some market operators and implicitly quitting the SAPARD projects 

which became inadequate to the market conditions; 

‣ swine fever, maintaining the embargo on pork and especially on derived products 

had a very negative influence on processing and export of this kind of projects. 

This is increased by the exodus of labour force in Europe, which reduced the 

number of national consumers); 

‣ the shadow economy remains a first rank disturbing factor. Persistence and even 

flourishing of black economy lead to severely limitation of the correct market 

operators through the unfair competition. 

II. 4 Achievement stage for the proposed objective 

II. 4.1 Measure 1.1 “The Improvement of processing and marketing of 

agricultural and fisheries products” 

The general objective of the measure is to increase the efficiency of the processing 

and marketing of agricultural and fishery products, having as a result the increase of 

the quality of the products in order to contribute to the implementation of the 

community acquis, the increase of competitiveness and products added value, and 

the creation of new jobs. 

Investments made under this measure are to contribute to: orientating the production 

in compliance with the predictable market tendencies, improving or rationalizing the 

collecting networks and en-gross trade, improving the presentation and conditioning 

of agricultural and fishery products on the market, increasing the efficiency by using 

modern technology, improving the quality of the processed products and the quality 

control for foodstuff by observing the minimum requirements for food safety, 

promoting production methods which do not harm the environment, creating new jobs 

in rural area as well as maintaining the existing ones. 

Data regarding investments financed in the reference period per main objective of the 

project are presented in Annex no. 2 with the monitoring tables i.e. table a.1.1 and 

a.3.1 affected by natural disasters. 

Capacities provided to be achieved or modernized under this measure, for the 

projects not affected by natural disasters and for the ones affected by natural 

disasters, are presented in the below tables: 

69


Sector 

Table II.8 –Projects not affected by natural disasters 

Number of 

projects 

Approved 

Reference unit for the approved projects 

Unit of 

Involved capacities 

measure New Improved 

Milk and dairy products 92 hl/year 2,691,955 6,881,813 

Milk collecting 2 hl/year 9,612 120,000 

From which Milk processing 

units 

89 hl/year 2,682,343 6,610,813 

t/year 357,918 784,683 

Meat and meat products and eggs 

202 Thousand 

From which 

pieces 

0 6,000 

eggs/year 

Beef 0 t/an 0 0 

Pork 2 ' 0 14,200 

processing Mutton 0 ' 0 0 

Poultry 4 ' 9,097 3,240 

Combined 141 158,614 509,711 

Slaughterhouses 54 ' 190,207 257,532 

Laboratories 0 ' 0 0 

Fruits, vegetable and potatoes 41 ' 132,964 149,708 

From which 

Fresh 21 ' 125,659 27,729 

Processed 20 ' 7,305 121,979 

Wine 45 ' 54,242 254,063 

From which 

Laboratories 5 ' 3,000 3,140 

Storage capacity 13 19,267 136,662 

Fish 18 ' 19,541 22,154 

Textile plants 1 300 0 

Cereals 64 ' 2,669,758 

Oil seeds 3 ' 0 252,600 

Sugar 0 ' 0 

TOTAL 466 

Table II.9 – Projects affected by natural disasters 

Sector 

Number of 

projects 

Approved 

Reference unit for the approved projects 

Involved capacities 

Unit of 

measure New Improved 

Milk and dairy products 0 hl/year 0.000 0.000 

Milk collecting 0 hl/year 0.000 0.000 

From which Milk processing 

units 

0 hl/year 0.000 0.000 

70


t/year 11,250.000 0.000 

Meat and meat products and eggs 

1 Thousand 

From which 

pieces 

0 0 

eggs/year 

Beef 0 t/an 0.000 0.000 

Pork 0 ' 0.000 0.000 

processing Mutton 0 ' 0.000 0.000 

Poultry 0 ' 0.000 0.000 

Combined 0 0.000 0.000 

Slaughterhouses 1 ' 11,250.000 0.000 

Laboratories 0 ' 0.000 0.000 

Fruits, vegetable and potatoes 0 ' 0.000 0.000 

From which 

Fresh 0 ' 0.000 0.000 

Processed 0 ' 0.000 0.000 

Wine 0 ' 0.000 0.000 

From which 

Laboratories 0 ' 0.000 0.000 

Storage capacity 0 ' 0.000 0.000 

Fish 0 ' 0.000 0.000 

Textile plants 0 ' 0.000 0.000 

Cereals 2 ' 18,500.000 

Oil seeds 0 ' 0.000 0.000 

Sugar 0 ' 0.000 

TOTAL 3 

Under sub-measure “Milk and dairy products”, the highest rate of investments is 

directed towards milk processing units, within this sector, new capacities of 2,691.955 

thousand hl/year for milk collecting and processing are provided to be achieved and 

capacities of 6,881.813 thousand hl/year are provided to be modernized. 

Under sub-measure meat, meat products and eggs a new capacity for meat 

processing of approximately 357.918 thousand tone/year are provided to be achieved 

and capacities with a value of 784.683 thousand tone/year and 6.000 thousand 

pieces eggs /year will be modernized, and for projects affected by natural disasters a 

new capacity is to be made of about 11.250 thousand tone/year. The highest quota of 

the capacities is focused on the combined meat processing and slaughterhouse 

sector. 

Under sub-measure Fruit, Vegetables and Potatoes, new capacities of 132.964 

thousand tones are provided to be achieved, mainly focused on fresh vegetable 

storage, while modernized capacities of about 149.708 thousand tone/ year are 

oriented mainly towards fruit, vegetable and potatoes processing. 

Through wine sub-measure, consisting of 45 contracts, at the end of 2008, new 

capacities of 54.242 thousand to/year are envisaged to be created and capacities of 

254.063 thousand tone/ year are envisaged to be rehabilitated. 

In the fishery sector new capacities of about 19.541 thousand tone/year will be 

created and existing capacities of 22.154 thousand to/year will be rehabilitated. 

71


Under Textile Plants Sub-Measure, new capacities of about 0.300 thousand 

tone/year will be set up. 

As regarding cereals, through the contracted projects the existing capacities of 

approximately 2,669.758 thousand tone/year will be modernized for projects not 

affected by natural disasters, and of approximately 18.500 thousand tone/year for the 

projects affected by natural disasters. 

Through the contracted financed under Seed Oils Sub-Measure, the existing 

capacities of approximately 252.600 thousand tone/years will be improved. 

Complete data on the capacities provided to be achieved or modernized are 

presented in the table II.8 and II.9. 

II. 4.2 Measure 1.2 „Improving the structures for quality, veterinary and plant 

health-control, for the quality of food stuffs and for consumer protection” 

Capacities provided to be achieved under this measure, for the approved projects are 

presented in the table below: 

Table II.10 

Laboratories 

Number of 

approved 

projects 

Capacity 

no. f analysis types 

sanitary-veterinary type 17 2,232 

Phyto-sanitary control 2 13 

Quality control for food 

products 

1 65 

TOTAL 20 

Within this measure, the highest rate concerns the number of analysis types for the 

sanitary-veterinary control, namely 2,232 types of analyses. 

The complete information on the capacities provided to be achieved are presented in 

Tables II.10. 

II. 4.3 Measure 2.1 „ Development and improvement of rural infrastructure” 

Through the projects approved in the period in question for this measure, it is 

provided the achievement of 60.670 km of new communal roads, modernization of 

2,392.594 km of communal roads and reparation of 67,898 km of the roads affected 

by natural disasters, the highest rate being represented of the modernization of 

communal roads, namely 95% out of the total works. 

72


For the projects affected by natural disasters, modernization of 259.450 km of 

communal roads and reparation of 27.918 km for the roads affected by natural 

disasters are provided. 

In case of the Water Supply Sub-Measure, only 27% from the contracted projects 

represent modernizations of the existing networks, the highest rate of the 

investments aimed at executing of new works of drinkable water supply, namely 

approximately 3,669.075 km of pipe. In view of rehabilitation of the drinkable water 

supply systems for the areas affected by natural disasters the execution of about 

55.989 km of pipe is provided. 

For the projects affected by natural disasters, execution of new 150.149 km of pipe, 

modernization of approximately 86.310 km of pipe and reparation of 12.337 km of 

pipe are provided. 

As regards the Sewerage in Centralized System Sub-Measure, aimed at works 

executing on a total of approximately 862.69 km of pipes, out of which the execution 

of new works represents 86%, the modernization of the existing systems represents 

14% from the total while for the reparation of the sewerage systems, the achievement 

of 0.200 km of pipe is provided. 

For the projects affected by natural disasters, execution of new 5 km of pipe, 

modernization of approximately 0.910 km of pipe and reparation of 6.100 km of pipe 

are provided. 

As regards the Works for Prevention and Protection against Floods Sub-Measure, 

the execution of 111.425 km is provided. 

These percentages are correlated with the situation on rural infrastructure in the 

diagnosis section of NPARD. The implementation of the sub-measures for Water 

Supply and Sewerage has an impact upon a total number of approximately 1.33 

million of inhabitants, namely 0.05 million of inhabitants for the projects affected by 

natural disasters. 

The complete information on the objectives types provided under Measure 2.1 is 

presented in the tables below. 

Action 


from which: 

building of new communal 

roads 

modernizing of communal 

roads 

rehabilitation of floods 

damaged roads 

Table II.11 - Projects not affected by natural disasters 

Reference Unit 

Quantity 

Number of 

approved 

projects 

Unit of 

measure 

Approved 

projects 

Concluded 

projects 

On-going 

projects 

380 km 2,521.162 2,356.401 164.761 

10 km 60.670 61.652 -0.982 

352 km 2,392.594 2,241.366 151.228 

18 km 67.898 53.383 14.515 

73


Drinkable water supply in 

centralized network in rural 

areas 

from which: 

execution of new water supply 

works 

extension and/or 

modernization 

rehabilitation of drinkable 

water supply systems in the 

floods damaged areas 

Sewerage in centralized 

system in rural areas 

from which: 

execution of new sewerage 

works 



rehabilitation of sewerage 

systems in floods damaged 

areas 

Works for floods prevention 

and protection 

273 

184 

78 

11 

87 

71 

15 

1 

22 

TOTAL 762 

km of 

pipeline 

lines 

no. of 

covered 

inhabitants 

km of 

pipeline lines 

km of 


km of 


km of 



no. of 

covered 


km of 


km of 


km of 


5,136.063 4,624.853 511.210 

983,795 920,164 63.631 

3,669.075 3,276.805 392.270 

1,410.999 1,325.432 85.567 

55.989 22,616 33.373 

862.690 776.463 86.227 

340,788 320,831 19,957 

740.075 681.685 58.390 

122.415 94.578 27.837 

0.200 0.200 0 

km 111.425 95.660 15.765 

ha 6,022.180 3,333.750 2,688.430 

Action 


from which: 

building of new communal 

roads 

modernizing of communal 

roads 

rehabilitation of floods 

damaged roads 

Drinkable water supply in 

centralized network in 

rural areas 

from which: 

execution of new water 

supply works 



Number of 

approved 

projects 

Table II.12 - Projects affected by natural disasters 

Unit of 

measure 

Reference Unit 

Approved 

projects 

Quantity 

Concluded 

projects 

On-going 

projects 

60 km 287.368 186.592 100.776 

0 km 0.000 0.000 0.000 

50 km 259.450 159.616 99.834 

10 km 27.918 26.976 0.942 

19 

12 

5 

km of 



no. of 

covered 


km of 



km of 



248.796 153.634 95.162 

45,332 32,735 12.597 

150.149 77.217 72.932 

86.310 64.080 22.230 

rehabilitation of drinkable 2 km of 12.337 12.337 0.000 

74


water supply systems in the 

floods damaged areas 

Sewerage in centralized 

system in rural areas 

from which: 

execution of new sewerage 

works 



rehabilitation of sewerage 

systems in floods damaged 

areas 

Works for floods 

prevention and protection 

TOTAL 83 

4 

1 

1 

2 

0 



km of 



12.010 0.000 12.010 

no. of 

covered 8,327 0.000 8,327 


km of 

pipeline 5.000 0.000 5.000 


km of 



km of 



km 0.000 0.000 0.000 

ha 0.000 0.000 0.000 

II. 4.4 Measure 3.1 “Investments in agricultural holdings” 

As a result of the approved investments for this measure, in the feasibility studies 

for the contracted projects the following capacities are provided (Tables II.13 and 

II.14): 

• Modernizing or building 909 stables and other buildings within the farm, 

namely 5 stables and other constructions within farms for the projects 

affected by natural disasters; 

• Modernizing of 16 greenhouses on a surface of 1.432 ha and building 79 

new greenhouse on a surface of 20.299 ha; 

• Procurement of 8,414 machinery or equipment, from which 99% are 

tractors, combines and other equipment, namely the procurement of 244 of 

machines and equipment for the projects affected by natural disasters; 

• Procurement of 9,894 heads of animals with high quality genetic value; 

• Setting up or modernizing of 739.003 ha of orchards and 1,003.130 ha 

vineyards. 

Table II.13 – Projects not affected by natural disasters 

Number Reference unit for approved 

Investment type 

of 

approved Measure 

projects 

Amount/Area 

projects unit number ha 

Constructions 356 pieces 1,004 211.834 

Out of 

which: 

Stables for cows/buffaloes 163 pieces 324 37.422 

Pig fattening 73 pieces 284 89.489 

Poultry farms 39 pieces 186 55.317 

Other stables 20 pieces 69 5.131 

Green 

houses and 

adequate 

equipments 

Newly built covered area 

Modernized covered area 

36 

8 

pieces/ha 

pieces/ha 

79 

16 

20.299 

1.432 

Other constructions in farm 17 pieces 46 2.743 

75


Tools and equipments- independent 1,404 pieces 8,414 522,408.614 

Out of 

which: 

Tractors, combine, other equipments 1,381 pieces 8,297 517,278.036 

Sewerage/ installations for treating used 

water 

0 pieces 0 0.000 

Irrigation installations 20 pieces 75 5,105.372 

Installations for complex processing of 

animal fodder 

3 pieces 42 25.205 

Septic tank and stable waist platforms 0 pieces 0 0.000 

Acquisition of animals with high genetic value 43 heads 9,894 967.005 

Milking cows/buffaloes 28 heads 724 526.730 

Out of which: Swine 1 heads 170 0.000 

Sheep/goats 14 heads 9,000 440.275 

Agricultural plantations 64 ha 85 1,742.133 

Out of which: 

Fruit growing 35 ha 39 739.003 

Vineyard 29 ha 46 1,003.130 

Vineyards nurseries 0 ha 0 0.000 

Other 54 - 234 2,188.350 

TOTAL 1921 


Number Reference unit for approved 

of 

projects 

Investment type 

approved Measure Amount/Area 

projects unit number ha 

Constructions 3 pieces 5 0.192 

Out of 

which: 

Stables for cows/buffaloes 1 pieces 1 0.081 

Pig fattening 0 pieces 0 0.000 

Poultry farms 0 pieces 0 0.000 

Other stables 1 pieces 1 0.071 

Green 

houses and 

adequate 

equipments 

Newly built covered area 

Modernized covered area 

0 

0 

pieces/ha 

pieces/ha 

0 

0 

0.000 

0.000 

Other constructions in farm 1 pieces 3 0.040 

Tools and equipments- independent 28 pieces 244 7,910.210 

Out of 

which: 

Tractors, combine, other equipments 28 pieces 244 7,910.210 

Sewerage/ installations for treating used 

water 

0 pieces 0 0.000 

Irrigation installations 0 pieces 0 0.000 

Installations for complex processing of 

animal fodder 

0 pieces 0 0.000 

Septic tank and stable waist platforms 0 pieces 0 0.000 

76


Acquisition of animals with high genetic value 0 heads 0 0.000 

Milking cows/buffaloes 0 heads 0 0.000 

Out of which: Swine 0 heads 0 0.000 

Sheep/goats 0 heads 0 0.000 

Agricultural plantations 0 ha 0 0.000 

Out of which: 

Fruit growing 0 ha 0 0.000 

Vineyard 0 ha 0 0.000 

Vineyards nurseries 0 ha 0 0.000 

Other 0 - 0 0.000 

TOTAL 31 

II. 4.5 Measure 3.4 „Development and diversification of economic activities 

generating multiple activities and alternative income” 

After the approval of the investments for this Measure, in feasibility studies, for 

contracted projects are mentioned the following capacities (Tables II.15 and II.16): 

• For the 2 approved projects on agricultural services, a number of 6 

organizations and 8 persons is registered; 

• Modernization or setting up of adaptation places of 10,246 beds in rural 

tourism, as well as 50 beds for the projects affected by natural disasters 

and 1,284 in other type of tourist activities in rural area; 

• Involvement in handicraft activities of 164 artisans; 

• Producing and processing of about 1,020.744 tones of aquaculture products, 

520.154 tones of snails and frogs, 2,169.600 kg of sericulture products, 

1,366.897 tones of bee-keeping products, 3,842.384 tones of mushrooms, 

2,628.720 tones wild berry fruits and wild berry bushes and 335.100 tones of 

medicinal and aromatic plants-processing; 

• Processing at farm level of the traditional products certified of 38,607.000 

hl/year and of 196.000 tone/year. 

Table II.15 – Projects not affected by natural disasters 

Actions 

Number of Reference unit for approved projects 

approved projects 

Measure Unit Amount 

Agricultural services 2 

no of organisations 6 

no of persons 8 

Rural tourism 643 no of beds 10,246 

Other types of tourist activities in 

rural area 

64 no of beds 1,284 

Handicraft activities 18 no of artisans 164 

Aquaculture 17 tones/year 1,020.744 

Snails and frogs 88 tones/year 520.154 

Sericulture 1 tones/year 2,169.600 

Bee-keeping 214 tones/year 1,366.897 

Mushrooms 24 tones/year 3,842.384 

Fruit of berries and bush fruits 


6 tones/year 2,628.720 

77


Medicinal and aromatic plantsprocessing 

Processing at farm's level of the 

certified traditional and/ or organic 

products 

Processing of organic products 0 

Processing of traditional products 1 

TOTAL 1,080 

2 tonnes/year 335.100 

1 

hl/ year 38,607.000 

tonnes/year 196.000 

hl/ year 0.000 


hl/ year 38,607.000 



Actions 

Number of Reference unit for approved projects 

approved projects 

Measure Unit Amount 

Agricultural services 0 

no of organisations 0 

no of persons 0 

Rural tourism 3 no of beds 50 

Other types of tourist activities in 

rural area 

0 no of beds 0 

Handicraft activities 0 no of artisans 0 

Aquaculture 0 tones/year 0.00 

Snails and frogs 0 tones/year 0.00 

Sericulture 0 tones/year 0.00 

Bee-keeping 0 tones/year 0.00 

Mushrooms 0 tones/year 0.00 

Fruit of berries and bush fruits 


0 tones/year 0.00 

Medicinal and aromatic plantsprocessing 

0 tonnes/year 0.00 

TOTAL 3 

II. 4.6 Measure 3.5 „Forestry” 

The capacities for the approved projects provided to be achieved under this measure 

are presented in the table below: 

Measures 

Table II.17 

Reference unit for the approved 

Number of 

projects 2 

approved 

projects Measurement unit Quantity 

Afforestation 

private 3 

public 0 

ha 115.000 

thousand piece 468 

ha 0.000 

thousand piece 0 

78


Nurseries 1 ha 4.500 

Investments for improvement the wood primary 

processing and marketing of forestry products 34 

Forestry roads, out of which 

No. of piece, 

equipment, 

machines 

207 

m 3 /year 736,251.000 

private 1 km 20.700 

public 75 km 594.415 

Equipment number 0.000 

Management of woods 0 Constructions 

numbers 

0.000 

0 Members number 0.000 

Associations 

Out of which 

of the forest 0 Equipment number 0.000 

owners 

Constructions 

0 

numbers 

0.000 

TOTAL 114 

II. 5 Conclusions on the differences between Regions/Measures/Sub-Measures 

found in the projects implementation 

At the end of 2008, the total amount committed is 1,400.512 million euro for the entire 

Programme, respectively a commitment rate of 92.05% in comparison with 2000 – 

2006 allocations (Table II.18). 

As regards the executed payments, by 31 st of December 2008, the total amount is 

1,278.744 million euro, respectively a consumption rate of 84.05% in comparison with 

2000 – 2006 allocations. 

79


Allocated/committed/paid amounts under SAPARD Programme at 31.12.2008 

Table II.18 

EURO 

Measure 


2000-2006 

Committed amount 

(31.12.2008) 

Commitment 

rate % out of 

allocation 

2000-2006 

Paid amount 

(31.12.2008) 

Commitment 

rate % out of 

allocation 

2000-2006 

1.1 Processing and marketing 379,513,279.37 351,458,474.07 92.61 340,682,877.76 89.77 

1.2 Improving new control structures 37,791,593.33 36,103,520.61 95.53 17,853,207.98 47.24 

2.1 Infrastructure 678,160,438.67 633,128,822.81 93.36 578,747,114.10 85.34 

3.1 Agricultural holdings 259,072,564.55 238,506,378.09 92.06 229,412,305.88 88.55 

3.2 Producer groups 1,000,000.00 85,896.06 8.59 29,372.98 2.94 

3.3 Agro-environment 1,849,504.00 216,864.73 11.73 186,720.87 10.10 

3.4 Diversification 84,220,533.41 70,060,061.80 83.19 64,832,277.75 76.98 

3.5 Forestry 74,451,006.67 66,676,683.41 89.56 42,547,654.45 57.15 

4.1 Vocational Training 3,949,238.67 2,901,044.70 73.46 3,028,493.43 76.69 

4.2 Assistance 1,441,406.25 1,374,497.80 95.36 1,424,016.45 98.79 

TOTAL 1,521,449,564.92 1,400,512,244.08 92.05 1,278,744,041.65 84.05 

80


The execution of payments to the beneficiaries of SAPARD Programme started in 

September 2003, and the progress of the monthly payments executed during 

September 2003 – December 2008 is included in Diagrams below. 

Value of payments - Measure 1.1 

Diagram II.28 

25,00 

Payments (millions EURO) 

20,00 

15,00 

10,00 

5,00 

0,00 

0,74 

0,56 

0,55 

1,74 

1,05 

1,37 

1,53 

1,99 

2,83 

2,16 

3,21 

4,05 

3,30 

3,45 

0,00 

4,81 

3,67 

2,04 

1,71 

1,05 

2,573,73 

1,21 

2,133,09 

1,89 

1,67 

2,76 

2,65 

3,87 

2,41 

3,00 

5,24 

4,36 

4,93 

5,17 

8,21 

9,63 

13,28 

10,10 

8,07 

12,71 

11,27 

10,08 

14,59 

8,37 

13,69 

19,17 

13,74 

15,85 

20,77 

2,61 

2,63 

7,36 

4,74 

4,24 

4,68 

3,49 

September 2003 

October 2003 

November 2003 

December 2003 

January 2004 

February 2004 

March 2004 

April 2004 

May 2004 

June 2004 

July 2004 

August 2004 


October 2004 

November 2004 

December 2004 

January 2005 

February 2005 

March 2005 

April 2005 

May 2005 

June 2005 

July 2005 

August 2005 


October 2005 

November 2005 

December 2005 

January 2006 

February 2006 

March 2006 

April 2006 

May 2006 

June 2006 

July 2006 

August 2006 


October 2006 

November 2006 

December 2006 

January 2007 

February 2007 

March 2007 

April 2007 

May 2007 

June 2007 

July 2007 

August 2007 


October 2007 

November 2007 

December 2007 

January 2008 

February 2008 

March 2008 

April 2008 

May 2008 

June 2008 

October 2008 

November 2008 

December 2008 

Months 

15,77 

8,32 

4,82 


Diagram II.29 

9,00 

8,00 

7,89 

7,00 


6,00 

5,00 

4,00 

3,00 

3,87 

2,38 

2,00 

1,00 

0,00 

0,42 

0,00 

0,76 

0,17 

0,00 

0,01 

0,00 

0,00 

1,39 

0,96 


October 2007 

November 2007 

December 2007 

January 2008 

February 2008 

March 2008 


April 2008 

May 2008 

June 2008 

October 2008 

November 2008 

December 2008 

81



Diagram II.30 

60,00 

55,69 

50,00 

Paym ents (m illions EURO ) 

40,00 

30,00 

20,00 

10,00 

0,00 

0,02 

0,73 

1,68 

1,54 

1,17 

2,15 

7,94 

4,84 

8,51 

17,43 

36,53 

35,46 

0,00 

28,05 

36,00 

17,55 

8,75 

5,69 

2,34 

4,79 

5,12 

9,98 

10,36 

15,52 

8,83 

12,89 

7,22 

9,47 

8,48 

6,76 

5,55 

4,27 

7,04 

6,81 

4,69 

3,98 

4,53 

2,42 

2,52 

2,33 

2,05 

0,78 

0,31 

0,40 

2,81 

3,96 

8,35 

16,00 

22,10 

6,92 

4,58 

3,69 

4,03 

5,849,05 

October 2003 

November 2003 

December 2003 

January 2004 

February 2004 

March 2004 

April 2004 

May 2004 

June 2004 

July 2004 

August 2004 


October 2004 

November 2004 

December 2004 

January 2005 

February 2005 

March 2005 

April 2005 

May 2005 

June 2005 

July 2005 

August 2005 


October 2005 

November 2005 

December 2005 

January 2006 

February 2006 

March 2006 

April 2006 

May 2006 

June 2006 

July 2006 

August 2006 


October 2006 

November 2006 

December 2006 

January 2007 

February 2007 

March 2007 

April 2007 

May 2007 

June 2007 

July 2007 

August 2007 


October 2007 

November 2007 

December 2007 

January 2008 

February 2008 

March 2008 

April 2008 

May 2008 

June 2008 

October 2008 

November 2008 

December 2008 

4,18 

40,67 

17,01 

10,39 


Diagram II.31 



16,00 

14,00 

12,00 

10,00 

8,00 

6,00 

4,00 

2,00 

0,00 

0,41 

0,44 

0,93 

0,00 

1,38 

1,98 

0,99 

0,89 

0,58 

0,94 

1,46 

1,97 

August 2004 

October 2004 

December 2004 

February 2005 

April 2005 

June 2005 

3,13 

3,45 

3,65 

2,90 

3,73 

August 2005 

October 2005 

December 2005 

2,06 

3,12 

February 2006 

1,62 

2,17 

April 2006 

2,91 

5,41 

6,02 

June 2006 

11,09 

August 2006 

13,91 


11,80 

October 2006 

15,06 

9,70 

December 2006 

11,99 

7,91 

February 2007 

6,00 

5,83 

April 2007 

7,82 

5,78 

June 2007 

6,69 

7,58 

August 2007 

8,66 

5,00 

October 2007 

9,11 

2,59 

December 2007 

0,86 

2,39 

2,13 

February 2008 

3,53 

3,65 

April 2008 

1,07 

June 2008 

10,85 

4,19 

November 2008 

2,08 

82



Diagram II.32 

0,03 

0,02 

0,02 

0,02 

0,01 

0,01 

0,01 

0,00 

January 2008 

February 2008 

March 2008 

April 2008 

May 2008 

0,00 

June 2008 

0,00 

October 2008 


0,00 

0,00 

0,00 

0,00 

0,00 

November 2008 

December 2008 


Diagram II.33 


0,18 

0,17 

0,16 

0,14 


0,12 

0,10 

0,08 

0,06 

0,04 

0,02 

0,00 

0,01 

0,01 

0,00 

0,00 

0,00 

0,00 


0,00 

October 2007 

0,00 

November 2007 

0,00 

December 2007 

0,00 

January 2008 

0,00 

February 2008 

March 2008 

0,00 

April 2008 

May 2008 

June 2008 

October 2008 

November 2008 

December 2008 


83



Diagram II.34 

6,00 

0,04 

0,00 

0,18 

0,31 

0,27 

0,26 

0,13 

0,30 

0,49 

0,33 

0,44 

0,40 

0,55 

0,50 

0,92 

0,63 

0,98 

0,89 

0,61 

0,75 

0,61 

5,35 

5,00 

Paym ents (m illions EURO ) 

4,00 

3,00 

2,00 

1,00 

0,00 

October 2004 

December 2004 

February 2005 

April 2005 

June 2005 

August 2005 

October 2005 

December 2005 

February 2006 

April 2006 

June 2006 

2,34 

1,33 

1,39 

1,53 

August 2006 

October 2006 


2,08 

1,79 

1,94 

2,30 

December 2006 

February 2007 

2,62 

1,67 

April 2007 

2,39 

1,83 

June 2007 

3,12 

2,87 

August 2007 

2,62 

2,64 

October 2007 

4,28 

2,22 

December 2007 

1,22 

1,40 

1,06 

0,92 

1,01 

0,83 

February 2008 

April 2008 

June 2008 

1,68 

November 2008 

0,81 


Diagram II.35 

16,00 

15,16 

14,00 

12,00 


10,00 

8,00 

6,00 

4,00 

3,05 

8,75 

6,50 

2,00 

0,00 

0,01 

February 2007 

0,55 

0,86 

0,44 

March 2007 

0,42 

April 2007 

1,64 

May 2007 

0,72 

June 2007 

0,55 

July 2007 

0,24 

August 2007 

0,82 


0,56 

October 2007 

0,07 

November 2007 

0,55 

December 2007 

0,27 

0,22 

1,18 

January 2008 

February 2008 

March 2008 

April 2008 

May 2008 

June 2008 

October 2008 

November 2008 

December 2008 


84



Diagram II.36 

0,60 

0,56 

0,55 

0,50 

0,50 

0,40 

0,30 

0,20 

0,31 

0,32 

0,27 

0,29 

0,13 

0,10 

0,05 

0,05 

0,00 

January 2007 

February 2007 

March 2007 

April 2007 

May 2007 

June 2007 

July 2007 

August 2007 


October 2007 

November 2007 

December 2007 

January 2008 

February 2008 

March 2008 

0,00 

April 2008 

0,00 

May 2008 

0,00 

June 2008 

0,00 

October 2008 

0,00 

November 2008 

0,00 

December 2008 


0,00 

0,00 

0,00 

0,00 

0,00 


Diagram II.37 


0,30 

0,05 

0,21 

0,26 

0,25 


0,20 

0,15 

0,10 

0,08 

0,16 

0,13 

0,15 

0,09 

0,12 

0,07 

0,05 

0,04 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

August 2004 

October 2004 

December 2004 

February 2005 

0,01 

0,01 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

April 2005 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,01 

0,00 

June 2005 

August 2005 

October 2005 

December 2005 

February 2006 

April 2006 

0,00 

0,00 

0,00 

0,02 

June 2006 

August 2006 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

0,00 

October 2006 

December 2006 

February 2007 

April 2007 

June 2007 

August 2007 

October 2007 

December 2007 

February 2008 

April 2008 

June 2008 

November 2008 


85


An analysis of the implementing stage of the contracted projects shows that out of 

4,549 contracted projects under the accredited measure, 3,965 projects have been 

finalised. 

On 31 st of December 2008, the distribution of the 4,549 contracted projects (having a 

total public value of 5,087,091,538.668 LEI, representing 1,400,512,244.099 million 

Euro) under measures 1.1, 1.2, 2.1, 3.1, 3.2, 3.3, 3.4, 3.5 .41 and 4.2 is as follows: 

- 469 projects under Measure 1.1; 



- 1,952 projects under Measure 3.1; 



- 1,083 projects under Measure 3.4; 



- 10 projects under measure 4.2. 

The 3,965 finalised projects are divided on measures as follows: 

− 430 projects under Measure 1.1; 



− 1,807 projects under Measure 3.1; 




− 10 projects under Measure 4.2. 

Out of the 1,521.450 million Euro representing the financial allocation under AFA 

2000 -2006 related to the accredited measures financed within SAPARD Programme, 

the status of the committed amounts and executed payments is the following: 

• Value of contracted projects - 1,400.512 million Euro; 

• Value of executed payments - 1,278.744 million Euro. 

The analysis of the existing commitments shows that 45% of the total committed 

amount (1,400.512 million Euro) is represented by commitments under measure 2.1, 

with a value of 633.129 million Euro. 

A comparison of the status of the sub-measures implemented under SAPARD 

Programme, we may point out that the highest attractiveness is focused on the 

following sub-measures: 

• Meat, meat products and eggs (203 contracted projects) – measure 1.1; 

• Milk and dairy products (92 contracted projects) – measure 1.1; 

• Field crops (1,217 contracted projects) – measure 3.1; 

• Milking animals (232 contracted projects) – measure 3.1; 

• Rural tourism (646 contracted projects) – measure 3.4; 

• Other activities (335 contracted projects) – measure 3.4. 

86


A synthesis of the stage of the measures under implementation in Romania, until the 

end of 2008, shows that the public contracted amount of the contracts under 

Measure 1.1 “The Improvement of processing and marketing of agricultural and 

fishery products” was 351.458 million Euro i.e 25% out of the total amount of 

PARDF’s commitments. 

For the 469 contracted projects under Measure 1.1, payments of a total amount of 

1,198,020.714 thousand LEI, i.e. 340.683 million Euro (Table II.20) – 96.93% of the 

contracted value and 89.77% of the NPARD allocations for 2000 – 2006 were 

authorized and executed. 

The situation of the commitments and payments on sub-measures within Measure 

1.1 is presented in tables II.19 and II.20. 

Table II.19 

Report on Executed Commitments by sub-measures under Measure 1.1 by 31.12.2008 

Submeasure 

% out of the 

measure 


2000 – 2006 

Value of 

contracted 

projects 

Euro 

Commitment 

rate % 

2000-2006 

Meat products and eggs 23 87,288,054.26 183,345,118.92 210.05 

Milk and milk products 23 87,288,054.26 49,124,045.52 56.28 

Cereals 10 37,951,327.94 42,532,635.45 112.07 

Oil seads 3 11,385,398.38 3,104,913.10 27.27 

Wine 9 34,156,195.14 29,860,511.78 87.42 

Fruits, vegetables and 

potatoes 

16 60,722,124.70 32,337,514.66 53.25 

Fish and fishery products 6 22,770,796.76 10,485,589.31 46.05 

Sugar 4 15,180,531.17 0.00 0.00 

Textile Plants 6 22,770,796.76 668,145.32 2.93 

TOTAL 100 379,513,279.37 351,458,474.07 92.61 

Table II.20 

Report on the Executed Payments by sub-measures under Measure 1.1 by 31.12.2008 

Submeasure 

% out of 

the 

measure 


2000 – 2006 

Value of executed 

payments 

Euro 

Consumption 

rate % 

2000-2006 

Meat products and eggs 23 87,288,054.26 176,635,540.50 202.36 

Milk and milk products 23 87,288,054.26 49,986,050.02 57.27 

Cereals 10 37,951,327.94 37,969,966.73 100.05 

Oil seads 3 11,385,398.38 3,470,690.76 30.48 

Wine 9 34,156,195.14 29,703,510.57 86.96 

Fruits, vegetables and 

potatoes 

16 60,722,124.70 31,692,369.84 52.19 

Fish and fishery products 6 22,770,796.76 10,497,995.56 46.10 

Sugar 4 15,180,531.17 0.00 0.00 

Textile Plants 6 22,770,796.76 726,753.80 3.19 

TOTAL 100 379,513,279.37 340,682,877.76 89.77 

87


As regards the regional distribution of the projects not affected by floods under 

Measure 1.1, Region 7 Alba Iulia and Region 2 South East has the highest rate, 

namely 17.38% of all the projects approved under this measure, Region 1 North East 

has approximately 15.88% of the approved projects and Region 3 South Muntenia 

has 15.24%. In conclusion, these four regions hold 65.88% of the total approved 

projects which could be explained by the fact that these regions are traditional areas 

for milk and meat production. The milk and meat sectors are prevalent sectors out of 

the total amount of approved projects under Measure 1.1. The regional distribution of 

the projects approved under Measure 1.1 is presented in Diagram II.38. 

Number of contracted projects and committed amounts under Measure 1.1 / Region 

Diagram II.38 

90 

Number of Contrected projects 

Committed amounts (Millions RON) 

250,00 

80 

70 

74 

81 

214,26 

71 

81 

211,86 

200,00 


60 

50 

40 

30 

173,55 

187,38 

93,18 

29 

155,22 

44 

58 

113,99 

98,79 

28 

150,00 

100,00 

C om m itted am ounts (M illions R O N ) 

20 

50,00 

10 

0 

Region 1 Region 2 Region3 Region 4 Region 5 Region 6 Region 7 Region 8 


0,00 

As regards the regional distribution of the projects affected by natural disasters for 

Measure 1.1, Diagram II.39 is presented below. 

88


Diagram II.39 



1,2 

12,00 



10,62 

10,57 

1 

10,00 

1 1 


0,8 

0,6 

0,4 

1 

8,00 

6,00 

4,00 


0,2 

0 

0,00 

0,00 

0 

0 

0 

1,11 

0,00 

0,00 

0,00 

0 

0 



2,00 

0,00 

As regards Measure 1.2 „Improving the structures for quality, veterinary and 

plant heath-control, for the quality of food stuffs and for consumer protection” 

the public contracted projects was of 36.104 million Euro, namely 2.58% out of the 

total PARDF commitments. 

As regards the 20 projects contracted under Measure 1.2, payments were authorized 

and executed in total amount of 65,668.548 thousand LEI, representing 17.853 

million Euro – 49.45% from the contracted value and 47.24% from the allocations 

NPARD 2000-2006. 

The situation of the commitments and payments on sub-measures within Measure 

1.2 is presented in tables II.21 and II.22. 

Table II.21 


Euro 

Submeasure 

% out of 

the 

measure 


2002 – 2006 

Value of 


projects 

Commitment 

rate % 

2002-2006 

Sanitary-veterinary control - - 31,957,733.47 84.56 

Plant-health control - - 2,498,202.44 6.61 

Food stuffs quality control - - 1,647,584.70 4.36 

TOTAL 100 37.791.593,33 36,103,520.61 95.53 

89


Table II.22 


Euro 

Submeasure 

% out of the 

measure 


2002 – 2006 


payments 


rate % 

2002-2006 

Sanitary-veterinary control - - 14,921,349.10 39.48 

Plant-health control - - 1,312,027.77 3.47 

Food stuffs quality control - - 1,619,831.10 4.29 

TOTAL 100 37.791.593,33 17,853,207.98 47.24 

As regards the distribution on regions of projects under Measure 1.2, the highest 

number of projects was registered in Region 8 Bucharest – Iflov, namely 20% of the 

total number of projects approved on this measure, Region 1 Nord – East has 

approximately 15% of all the projects approved under this measure and Region 7 

Alba Iulia registered 15% of the total number of projects approved on the same 

measure (each of them has 3 approved projects). In conclusion, these three regions 

hold 50% of the total approved projects under this measure. 

The regional distribution of the approved projects under Measure 1.2 is presented 

in Diagram II.40. 

Diagram II.40 

90



4,5 

25,00 

4 

3,5 



20,61 

19,95 

23,20 

4 

20,00 


3 

2,5 

2 

1,5 

3 

14,18 

2 

2 

14,14 

2 

12,65 

13,07 

2 

11,62 

2 

3 

15,00 

10,00 


1 

5,00 

0,5 

0 



0,00 

As regards Measure 2.1 „Development and improvement of rural infrastructure”, 

the public contracted amount of the contracts was of 633.129 million Euro i.e 45.21% 

out of the total amount of PARDF’s commitments. 

At the end of 2008, the overall value of the contracts under this Measure meaning 

633.129 million Euro as compared to the amount allocated by AFA 2000 – 2006 

represents a commitment rate of 93.36% (Table II.23). 

For the 845 projects contracted under Measure 2.1, payments of a total amount of 

2,174,805.375 thousand LEI i.e. 578.747 million Euro (Table II.24) – 91.41% of the 



Table II.23 


Euro 

Submeasure 

% out of 

the 

measure 


2000 – 2006 

Value of 


projects 

Commitment 

rate % 

2000-2006 

Roads in rural areas 50 339,080,219.17 339,882,909.91 100.24 

Drinkable water supply 

through rural area district 35 237,356,153.42 187,123,263.33 78.84 

networks 

District system sewage in 

rural areas 

9,6 65,103,402.08 76,347,512.60 117.27 

91


Works of prevention and 

protection against floods 

5,4 36,620,663.67 29,775,136.97 81.31 

TOTAL 100 678,160,438.33 633,128,822.81 93.36 

Table II.24 


Euro 

Submeasure 

% out of 

the 

measure 


2000 – 2006 

Value of 

executed 

payments 


rate % 

2000-2006 

Roads in rural areas 50 339,080,219.17 314,117,719.05 92.64 

Drinkable water supply 

through rural area district 35 237,356,153.42 170,772,141.99 71.95 

networks 

District system sewage in 

rural areas 

9,6 65,103,402.08 71,321,797.55 109.55 

Works of prevention and 

protection against floods 

5,4 36,620,663.67 22,535,455.52 61.54 

TOTAL 100 678,160,438.33 578,747,114.10 85.34 

In terms of the regional distribution of the projects not affected by natural disasters 

approved for this measure, 3 regions, namely Region 1 North East Iasi (26.64%), 

Region 2 South East Constanta (16.40%) and Region 3 South Muntenia Targoviste 

19.29%) have 62.33% of the total percentage of the approved projects under this 

measure. 

The regional distribution of the approved projects under Measure 2.1 is presented 

in Diagram II.41. 

Diagram II.41 

92



250 

600,00 

570,30 




200 

150 

100 

203 

318,89 

125 

420,09 

147 

104 

264,03 

151,17 

177,14 

182,33 

500,00 

400,00 

300,00 

200,00 


50 

56 

59 

61 

100,00 

0 

22,74 

7 

Region 1 Region 2 Region 3 Region 4 Region 5 Region 6 Region 7 Region 8 


0,00 

As regards the regional distribution of approved projects affected by natural disasters 

under this measure, two regions, respectively, Region 1 North – East Iasi and Region 

3 South Muntenia have approximately 20.48% of the total number of approved 

projects affected by natural disasters, while Region 4 South – West Oltenia has 

19.28%. In conclusion, these three regions hold 60.24% of the total approved 

projects affected by natural disasters. 

Regional distribution of the approved projects under measure 2.1 is presented in 

Diagram II.42. 

Diagram II.42 

93




18 

16 

17 

44,70 

17 

47,41 

16 



50,00 

45,00 

14 

42,48 

40,00 


12 

10 

8 

6 

12 

22,26 

8 

22,51 

9 

23,01 

35,00 

30,00 

25,00 

20,00 

15,00 


4 

3 

10,00 

2 

1 

8,11 

5,00 

0 



3,52 

0,00 

Within Measure 3.1 „Investments in agricultural holdings”, the public contracted 

amount of the contracts was 238.506 million Euro i.e 17.03% out of the total 

amount of PARDF’s commitments. 

For the 1,952 projects contracted under Measure 3.1, payments of a total amount 

of 800,831.047 thousand LEI i.e. 229.412 million Euro (Table II.26) – 96.19% of the 



The situation of the commitments and payments executed under each sub-measure 

within this measure is showed in Tables II.25 and II.26 

Table II.25 


Euro 

Submeasure 

% out of 

the 

measure 


2002 – 2006 

Value of 


projects 

Commitment 

rate % 

2002- 2006 

Field crops 19 49,223,787.26 111,454,486.78 226.42 

Horticulture (out of which 

1.5% from the flower sector) 

8 20,725,805.16 2,998,136.86 14.47 

Vineyard 8 20,725,805.16 7,953,808.01 38.38 

Fruit tree farming 8 20,725,805.16 5,216,312.30 25.17 

Green Houses 4 10,362,902.58 5,333,991.00 51.47 

Milk animal farming 14 36,270,159.04 32,089,824.42 88.47 

Cattle breading and fattening 14 36,270,159.04 4,344,455.60 11.98 

Goats and sheep fattening 3 7,772,176.94 4,300,602.36 55.33 

94


Young rams fattening 3 7,772,176.94 2,156,111.88 27.74 

Swine 10 25,907,256.45 31,931,424.44 123.25 

Poultry 5 12,953,628.23 27,745,554.10 214.19 

Other type of vegetable, 

animals and poultry farming 

4 10,362,902.58 2,981,670.34 28.77 

TOTAL 100 259,072,564.55 238,506,378.09 92.06 

Table II.26 


Euro 

% out of 

Value of Consumption 


Submeasure 

the 

executed 

rate % 

2002 – 2006 

measure 

payments 2002-2006 

Field crops 19 49,223,787.26 112,854,925.39 229.27 

Horticulture 8 20,725,805.16 3,138,607.69 15.14 

Vineyard 8 20,725,805.16 7,738,594.07 37.34 

Fruit tree farming 8 20,725,805.16 5,333,212.16 25.73 

Green Houses 4 10,362,902.58 5,562,994.42 53.68 

Milk animal farming 14 36,270,159.04 29,078,426.47 80.17 

Cattle breading and fattening 14 36,270,159.04 3,161,876.46 8.72 

Goats and sheep fattening 3 7,772,176.94 2,722,554.48 35.03 

Young rams fattening 3 7,772,176.94 1,956,771.00 25.18 

Swine 10 25,907,256.45 28,493,785.05 109.98 

Poultry 5 12,953,628.23 26,407,869.87 203.86 

Other type of vegetable, 

animals and poultry farming 

4 10,362,902.58 2,962,688.82 28.59 

TOTAL 100 259,072,564.55 229,412,305.88 88.55 

As regards the regional distribution of projects not affected by natural disasters under 

measure 3.1, Region 2 South – East has the greatest rate, namely 24.78% out of the 

projects approved on this measure, Region 3 South – Muntenia has o rate of 

approximately 19.05% out of the total number of approved projects, and Region 1 

North – East Iasi has 16.09%. Thus, these three regions have 59.92% out of the total 

approved projects. This aspect can be explained by the fact that these regions 

include areas with milk production traditions. These regions are also best represented 

as regards the total number of projects approved under measure 1.1. 

Diagram II.43 shows the regional distribution of the projects under measure 3.1. 

95



Diagram II.43 

500 

476 

250,00 

450 



400 

191,34 

200,00 


350 

300 

250 

200 

150 

309 

125,60 

164,83 

366 

61,65 

218 

95,40 

242 

107,35 

76,18 

167 

150,00 

100,00 


100 

122 

50,00 

50 

12,01 

0 



21 

0,00 

As concerns the regional distribution of projects affected by natural disasters under 

measure 3.1, Region 5 West – Romania has the highest rate, namely 74.19% out of 

the total number of projects approved under this measure. 

Diagram II.44 shows the regional distribution of projects under measure 3.1. 

Diagram II.44 

96




25 

18,77 



20,00 

18,00 

20 

23 

16,00 


15 

10 

14,00 

12,00 

10,00 

8,00 

6,00 


5 

2,64 

3,07 

4,00 

0 

2 

3 

0,00 

0,16 

0,00 

0,83 

0 

2 

1 

0 

0,00 0 



As regards Measure 3.2 “Setting up producers groups”, the public contracted value 

was of 0.086 million Euro, namely 0.01% from the total of PARDF’s commitments. 


108.251 thousand LEI i.e. 0.029 million Euro (Table II.28) – 34.20% of the 




within this measure is showed in Tables II.27 and II.28. 

Table II.27 


Euro 

2,00 

0,00 

Submeasure 

% out of 

the 

measure 


2005 – 2006 

Value of 


projects 

Commitment rate 

% 

2005- 2006 

Cereals and Technical Plants - - 0.00 0.00 

Medicinal and aromatic plants - - 0.00 0.00 

Specialized crops (tobacco, 

hops) 

- - 0.00 0.00 

Vegetables and Potatoes - - 0.00 0.00 

Fruits, including grapes - - 0.00 0.00 

Wine grapes - - 0.00 0.00 

Mushrooms - - 0.00 0.00 

Flowers and decorative plants - - 0.00 0.00 

Milk - - 75,114.60 7.51 

Meat - - 0.00 0.00 

97


Eggs for consumption - - 0.00 0.00 

Honey and beekeeping products - - 10,781.46 1.08 

Fishery Products - - 0.00 0.00 

Forestry Products - - 0.00 0.00 

TOTAL 100 1,000,000.00 85,896.06 8.59 

Table II.28 


Euro 

Submeasure 

% out of 

the 

measure 


2005 – 2006 

Value of 

executed 

payments 

Consumption rate 

% 2005-2006 

Cereals and Technical Plants - - 0.00 0.00 

Medicinal and aromatic plants - - 0.00 0.00 

Specialized crops (tobacco, 

hops) 

- - 0.00 0.00 

Vegetables and Potatoes - - 0.00 0.00 

Fruits, including grapes - - 0.00 0.00 

Wine grapes - - 0.00 0.00 

Mushrooms - - 0.00 0.00 

Flowers and decorative plants - - 0.00 0.00 

Milk - - 29,372.98 2.94 

Meat - - 0.00 0,00 

Eggs for consumption - - 0.00 0,00 

Honey and beekeeping 

products 

- - 0.00 0.00 

Fishery Products - - 0.00 0.00 

Forestry Products - - 0.00 0.00 

TOTAL 100 1,000,000.00 29,372.98 2.94 

As regards the distribution on regions of projects under Measure 3.2, the highest 

number of projects was registered in Region 7 Alba Iulia, namely 75% of the total 

number of projects approved on this measure. 

The distribution on regions of projects under Measure 3.2 is given in Diagram II.45. 

Diagram II.45 

98


Number of contracted projects and committed amounts under Measure 3.2 Region 

3,5 

0,30 



3 

3 

0,25 


2,5 

2 

1,5 

1 

1 

0,27 

0,20 

0,15 

0,10 


0,5 

0 

0 

0,04 

0,00 0,00 

0,00 0,00 0,00 

0,00 

0 

0 0 0 

0 



0,05 

0,00 

As regards Measure 3.3 “Agricultural production methods designed to protect the 

environment and maintain the countryside” the public contracted value was of 0.217 

million Euro from the total of PARDF’s commitments, namely 0.02% of the total 

number of projects approved on this measure. 

For the 47 projects contracted under Measure 3.3 payments were authorized and 

executed in value of 630.189 thousand LEI, representing 0.187 million Euro – 86.10% 

from the contracted value and 10.10% from the allocations of NPARD 2000-2006. 


within this measure is showed in Tables II.29 and II.30. 

Table II.29 


Euro 

Submeasure 

% out of 

the 

measure 


2005 – 2006 

Value of 


projects 

Commitment 

rate % 2005- 

2006 

Preservation of soil and 

protection against erosion 

Preservation of biodiversity by 

traditional agriculture methods 

40 739,801.60 0.00 0.00 

20 369,900.80 216,864.73 58.63 

Organic Farming 40 739,801.60 0.00 0.00 

TOTAL 100 1,849,504.00 216,864.73 11.73 

99


Table II.30 


Euro 

Submeasure 

% out of 

the 

measure 


2005 – 2006 

Value of 

executed 

payments 


rate % 

2005-2006 

Preservation of soil and protection 

against erosion 

Preservation of biodiversity by 

traditional agriculture methods 

40 739,801.60 0.00 0.00 

20 369,900.80 186,720.87 50.48 

Organic Farming 40 739,801.60 0.00 0.00 

TOTAL 100 1,849,504.00 186,720.87 10.10 

The distribution on regions of projects under Measure 3.3 is given in Diagram II.46: 

Diagram II.46 


50 

0,90 

45 



47 

0,80 

40 

0,70 


35 

30 

25 

20 

15 

0,76 

0,60 

0,50 

0,40 

0,30 


10 

0,20 

5 

0,00 

0,00 

0,00 0,00 

0,00 0,00 

0,00 

0,10 

0 

0 

0 

0 

0 0 0 

0 

0,00 



Within Measure 3.4 “Development and diversification of economic activities 

generating multiple activities and alternative income”, the public contracted amount 

100


of the contracts was 70.060 million Euro i.e. 5.00% out of the total amount of 

PARDF’s commitments. 

For the 1,083 projects contracted under Measure 3.4, payments of a total amount 

of 225,339.095 thousand LEI i.e. 64.832 million Euro (Table II.32) – 92.54% of the 



Table II.31 


Submeasure 

% out of 

the 

measure 


2002 – 2006 

Value of 


projects 

Euro 

Commitment 

rate % 

2002-2006 

Agriculture Services 2 1,684,410.67 188,523.40 11.19 

Rural tourism 25 21,055,133.35 55,651,403.54 264.31 

Other types of tourism activities in 

rural area 

20 16,844,106.68 5,150,303.48 30.58 

Handcraft activities 10 8,422,053.34 1,209,733.25 14.36 

Acvaculture 8 6.737,642.67 1,908,005.41 28.32 

Other activities 10 8,422,053.34 5,917,002.55 70.26 


certified traditional and/ or organic 25 21,055,133.35 35,090.19 0.17 

products 

TOTAL 100 84,220,533.41 70,060,061.80 83.19 

Table II.32 


Euro 

Submeasure 

% out of 

the 

measure 


2002 – 2006 

Value of 

executed 

payments 

Consumptio 

n rate % 

2002-2006 

Agriculture Services 2 1,684,410.67 203,213.87 12.06 

Rural tourism 25 21,055,133.35 51,307,470.79 243.68 

Other types of turist activities in 

rural area 

20 16,844,106.68 4,772,591.75 28.33 

Handcraft activities 10 8,422,053.34 1,170,444.84 13.90 

Acvaculture 8 6,737,642.67 1,493,783.84 22.17 

Other activities 10 8,422,053.34 5,848,305.15 69.44 


certified traditional and/ or organic 25 21,055,133.35 36,467.51 0.17 

products 

TOTAL 100 84,220,533.41 64,832,277.75 76.98 

As regards the general distribution of projects unaffected by natural disasters under 

measure 3.4, Region 7 Central Alba Iulia is best represented holding 32.22% from 

the total of the projects approved on this measure; Region 1 North-East Iasi holds 

approximately 16.57% from the total of the approved projects, and Region 4 South- 

West Oltenia holds 13.70%. Thus, these three regions hold 62.49% from the total of 

the approved projects, aspect which can be explained by the fact that many areas 

101


with a tradition in agro-tourism are present in these regions. 

The regional distribution of projects under measure 3.4 is presented in Diagram II.47 


Diagram II.47 

400 


93,09 

100,00 

350 


90,00 

80,00 


300 

250 

200 

150 

100 

179 

44,59 

87 

73 

148 

22,50 

89 

145 

34,86 

348 

70,00 

60,00 

50,00 

40,00 

30,00 

20,00 


50 

17,70 

16,24 

20,76 

11 

10,00 

0 

1,94 


0,00 


The regional distribution of projects affected by natural disasters within measure 3.4 

is presented in Diagram II.48. 

Diagram II.48 

102




3,5 

3 



1,64 

1,80 

1,60 


2,5 

2 

1,5 

1 

3 

1,40 

1,20 

1,00 

0,80 

0,60 


0,40 

0,5 

0 

0,00 

0,00 0,00 

0,00 

0,00 

0,00 

0,00 

0 0 0 

0 

0 

0 

0 



0,20 

0,00 

Within Measure 3.5 „Forestry”, the public contracted value was of 66.677 million Euro 

representing 4.76% from the total committed amounts of PARDF. 

The total value of the contracted projects on this measure (66.677 million Euro) 

represents 89.56% of AFA 2002-2006 (Table II.33). 

For the 114 projects contracted on Measure 3.5 payments were authorized and 

executed in value of 155,091.120 thousand LEI, representing 42.548 million Euro 

(Table II.34) – 63.81% from the contracted value and 57.15% from the allocations of 

NPARD 2000-2006. 

Table II.33 


Euro 

Submeasure 

% out of 

the 

measure 


2003 – 2006 

Value of 


projects 

Commitment 

rate % 

2003-2006 

Afforestation 10 7,445,100.67 89,431.74 1.20 

Nurseries 5 3,722,550.33 23,892.09 0.64 

Investments for the 

improvement of primary wood 

processing and marketing of 

15 11,167,651.00 6,072,161.69 54.37 

forest products 

Forestry roads 20 14,890,201.33 60,491,197.90 406.25 

Forest exploitation 50 37,225,503.33 0.00 0.00 

TOTAL 100 74,451,006.67 66,676,683.41 89.56 

103 

Table II.34



Submeasure 

% out of 

the 

measure 


2003 – 2006 

Value of 

executed 

payments 

Euro 


rate 

% 2003-2006 

Afforestation 10 7,445,100.67 87,185.99 1.17 

Nurseries 5 3,722,550.33 24,965.08 0.67 

Investments for the 

improvement of primary wood 

processing and marketing of 

15 11,167,651.00 6,392,262.52 57.24 

forest products 

Forestry roads 20 14,890,201.33 36,043,240.85 242.06 

Forest exploitation 50 37,225,503.33 0.00 0.00 

TOTAL 100 74,451,006.67 42,547,654.45 57.15 

As regards the regional distribution of the projects on Measure 3.5, Region 7 Central 

Alba Iulia is best represented, holding 33.33% from the total number of the projects 

approved within this measure. Region 6 Nord - West holds approximately 29.83% 

from the total number of the approved projects, while Region 5 West Romania – has 

15.79%. In conclusion, these three regions hold 78.95% of the total approved 

projects under this measure. 

The regional distribution of the approved projects on measure 3.5 is presented in 

Diagram II.49. 


Diagram II.49 

40 

35 



78,20 

38 

90,00 

80,00 


30 

25 

20 

15 

10 

27,04 

17 

42,05 

18 

34 

77,02 

70,00 

60,00 

50,00 

40,00 

30,00 

20,00 


5 

0 

10,47 

0,00 

5 

2 

0 

0,00 0 

1,73 



10,00 

0,00 

For Measure 4.1 „Improvement of Vocational Training”, the public contracted 

amount was of 2.901 million Euro i.e 0.21% out of the total amount of PARDF’s 

commitments. 

For the 5 projects contracted under Measure 4.1 payments were authorized and 

executed in value of 10,521.610 thousand LEI, representing 3.028 million Euro (Table 

104


II.35 and II.36) – 104.39% from the contracted value and 76.69% from the allocations 

of NPARD 2002-2006. 

Report on the Executed Commitments - Measure 4.1 by 31.12.2008 

Table II.35 

Euro 

Measure 4.1 


2002 – 2006 

Value of contracted 

projects 

Commitment rate % 

2002-2006 

TOTAL 3,949,238.67 2,901,044.70 73.46 

Table II.36 


Euro 

Measure 4.1 


2002 – 2006 


payments 


% 2002-2006 

TOTAL 3,949,238.67 3,028,493.43 76.69 

For Measure 4.2 „Technical Assistance”, the public contracted amount was of 1.374 

million Euro i.e. 0.10% out of the total amount of PARDF’s commitments. 


5,214.570 thousand LEI i.e. 1.424 million Euro (103.60% out of the contracted value 

and 98.79% out of the NPARD allocations for 2000 – 2006) were authorized and 

executed (Table II.37). 

Measure 4.2 

Report on the Executed Commitments - Measure 4.2 by 31.12.2008 


2000 – 2006 

Value of contracted 

projects 

Table II.37 


% 2000-2006 

TOTAL 1,441,406.25 1,374,497.80 95.36 

Euro 

Report on the Executed Payments by Measure 4.2 by 31.12.2008 

Table II.38 

Euro 

Measure 4.2 


2000 – 2006 


payments 

Consumption rate 

% 2000-2006 

TOTAL 1,441,406.25 1,424,016.45 98.79 

105


Chapter III 

Measures to improve quality and efficiency of SAPARD 

Programme implementation 

III.1 Activities of the Managing Authority 

In accordance with the provisions set out in Art. 5 – 11 of Section B on “Programme 

management, monitoring, and assessment” of the Multi-Annual Financial Agreement, 

the Managing Authority has tasks regarding the monitoring, <strong>annual</strong> and final <strong>report</strong>ing 

and mid-term and ex-post evaluation of the SAPARD Programme, being the main 

body responsible with the efficiency and reliability of the coordination and <strong>report</strong>ing 

carried out in relation to the monitoring and evaluation of the SAPARD Programme. 

The Managing Authority (MA) is the authorized body that can make proposals to the 

Commission on any adjustments that need to be brought to the Programme, after 

consultations with the Paying Agency for Rural Development and Fishery (PARDF) 

and after receiving the agreement of the Monitoring Committee’s members. 

According to the provisions of Government Decision no. 385/2007 on the 

organization and functioning of the Ministry of Agriculture and Rural Development, 

with its following amendments and completions, the Ministry of Agriculture, Forests 

and Rural Development, through the Directorate General for Rural Development, is 

the Managing Authority for agriculture and rural development for the SAPARD 

Programme and for the National Rural Development Programme 

According to its specific tasks, in 2008, MA organised a number of activities to help 

increase the efficiency of the Programme implementation, by ensuring the 

coordination of the monitoring and <strong>report</strong>ing activities. 

In 2008, the Managing Authority organised the 16 th reunion of the Monitoring 

Committee for the SAPARD Programme (MC), on the 25 th of November. The 

approval, in written procedure, by the Monitoring Committee members of the 2007 

SAPARD Annual Report has been considered the 15 th reunion. 

The Managing Authority has ensured the secretariat of the Committee’s reunions and 

has maintained a permanent contact with the bodies represented in the Committee in 

order to identify the problems they are facing. 

Whenever necessary, the Managing Authority notified the institutions involved in the 

SAPARD Programme implementation concerning the occurring problems in order to 

identify appropriate measures for addressing them. 

106


In order to avoid the decommitment of the funds, the Managing Authority for 

SAPARD Programme solicited to the European Commission to prolong the validity 

term of the amount allocated through AFA 2006 from n+2 to n+3. 

In this regard, the Managing Authority submitted to the European Commission, 

through address no. 77787/18 th of April 2008, an official request for the prolongation 

of the AFA 2006 validity. 

The European Commission transmitted to the Romanian authorities a point of view 

regarding AFA’s 2006 prolongation through address no. D(2008)1081 from 

05.11.2008 mentioning, at the same time, that the decision regarding the 

prolongation of the deadline for the decommitment does not coincide with the 

recommencement of the funds by the Commission; the Commission will start the 

reimbursement of the Community contribution only when the EC services will receive 

the final independent audit <strong>report</strong> from NAO, following the revise of the <strong>report</strong> and of 

the additional comments made by NAO, which have to highlight that the action plan 

can be implemented. 

Having in regard that, in accordance with art. 2 from MAFA, the EC financial 

contribution is established through <strong>annual</strong> financing agreements, MA made all the 

necessary actions in order to close, ratify and notify the ratification of the Agreement 

modifying the Annual Financing Agreement for 2006, agreement signed on the 4 th of 

December 2008. 

Having in regard that the Multi-Annual Financial Agreement (Art. 2) stipulates that the 

EC contribution is determined through the Annual Financial Agreements, the MA has 

taken the necessary steps to conclude, ratify, and notify the ratification of the 2006 

Agreement, agreement signed on 4 th of December 2008. 

Also during 2008, the Managing Authority carried out activities of analysing and 

processing the statistical information received from the PARDF concerning the 

SAPARD Programme. These activities comprise: 

• Verifying, processing and archiving the daily and weekly <strong>report</strong>s sent by 

PARDF by measure and sub-measure concerning the degree of 

commitment and consumption of the amounts allocated, the projects’ 

physical stage of implementation. 

• Verifying, monitoring and archiving the Registers of Payment Dossiers 

(RPD); 

• Verifying the implementation stage of projects by measures and submeasures 

at county and regional level; 

• Verifying the information existing in the monthly/trimester informing notes 

regarding the progress of the technical and financial implementation of the 

measures and sub-measures, compared to the commitments envisaged 

according to the Annual Financing Agreements; 

• Weekly elaboration of the monitoring tables by measures and submeasures 

in order to inform the management of the ministry regarding the 

absorption stage of the funds allocated through the programme. 

• Justifying the proposals regarding the amounts necessary amounts in order 

to ensure the co-financing of projects through the programme. 

107


During the 16 th reunion of the SAPARD Programme the Managing Authority proposed 

for approval of the MC members the NPARD’s financial table for measure 2.1 

“Development and improvement of rural infrastructure”, for 2006, a reallocation of 

45.00 million Euro from the Community contribution from the affected areas to the not 

affected areas, without modifying the initially allocated amount for this measure, 

respectively the value of 524.81 million Euro. 

Also, MA proposed the increasing with 0.1 million Euro, the Community contribution 

for measure 4.2 “Technical Assistance” for 2005, through redistribution from measure 

1.2 “Improving the structures for quality, veterinary, and plant-health control, for the 



this measure. 

During 2008, the General Directorate for Rural Development approved the final 

activity <strong>report</strong>s for the following projects within 4.1 “Improving vocational training”: 

• Vocational training for the development of the competencies regarding the 

agricultural methods assigned to protect the environment and maintain the 

rural landscape; 

• Vocational training in the development of competencies regarding the 

vegetable and breeding animals’ production; 

• Vocational training for the development of competencies in forestry. 

Moreover, the final activity <strong>report</strong> for the project “Set up and preparation of the 

Monitoring Committee meetings in 2005, 2006 and 2007” within measure 4.2 

“Technical Assistance” was approved. 

Having in regard the European Commission’s request concerning the elaboration and 

implementation of the Action Plan, the Managing Authority has collaborated with the 

National Fund and PARDF, thus monitoring the implementation of the Action Plan. 

Also, MA has constantly informed on the programme’s implementation stage by bimonthly 

<strong>report</strong>s regarding the value of the contracts/ performed payments from the 

European Commission’s contribution. 

III. 2 Competent Authority – National Fund Activities 

III. 2.1 Financial aspects regarding the implementing status of SAPARD 

Programme 

III. 2.1.1 Declarations of expenditure and requests of funds to the European 


According to the supplementary Declaration of expenditure and the Request of Funds 

no. 36, with cut off date November, 30th 2008, the total amount of expenditures from 

European Union’s SAPARD funds from the beginning of the programme up to 

November, 31 st 2008 is 909,963,876.79 Euro. This sum also includes the amount of 

685.167,89 Euro representing payments effectuated from the interest gathered in the 

Euro SAPARD account and which, according to EC’s recommendations, have been 

included in Table A1 of the Declarations of expenditures and Request of funds no. 

36. The Declaration of expenditure with cut off date, the 4 th quarter of 2008, was 

submitted to EC on 19 th of May 2009. 

108


In 2008, the National Fund submitted to EC-DG AGRI, the Declarations of 

expenditure and Requests of funds in amount of 152,050,058. 27 Euro, as it follows: 

• Declaration of Expenditure and Request of Funds no. 33 with respect to 

quarter IV 2007, in amount of 11,696,348.08 Euro, submitted to the European 

Commission on 05.02.2008 by letter no. 310280; 

• Declaration of Expenditure and Request of Funds no. 34 with respect to 

quarter I 2008, in amount of 28,332,290.40 Euro, submitted to the European 

Commission on 12.06.2008 by letter no. 313689; 

• Declaration of Expenditure and Request of Funds no. 35, with respect to 2 nd 

and 3 rd quarter of 2008, submitted to the European Commission on 

03.11.2008 by letter no. 316992, did not include the payments fulfilled during 

the <strong>report</strong>ing period due to the fact that the payments fulfilled during the 2 nd 

quarter of 2008 should have been re-verified according to the improved 

manuals of procedures and during the 3 rd quarter payments had not been 

performed; 

• Declaration of expenditure and Request of funds no. 36 with respect to 

October and November 2008, in amount of 112,021,419.79 Euro submitted to 

the European Commission on 18.12.2008 by letter no. 318700. 

During 2008, no payments were performed from the interest accumulated in Euro 

SAPARD account. The interest accrued on 31.12.2008 is in amount of 2,087,624.27 

Euro (the amount accumulated during 2008 is 649,575.25 Euro). 

III. 2.1.2 Reimbursements from European Commission 

During 2008 the European Commission reimbursed to the National Fund a total 

amount of 10.549.598, 00 Euro from the total eligible amount requested in 2008, as it 

is presented in the table below: 

Table III.1 

No. 

declar 

ation 

33 

34 

35 

36 

Declaration of 

expenditure and Request 

of funds 

Declaration of expenditure 

and Request of funds trim. 

IV 2007 



I 2008 



I and III 2008 


and Request of funds with 

cut off date 30.11.2008 

Requested 

amount 

11,696,348.08 

Date of 

submission 

to EC 

28,332,290.40 12-iun-08 

0 03-nov-08 

112,021,419.79 18-dec-08 

Amount 

transferred 

from EC 

Date of 

transfer 

05-feb-08 10,549,598.00 10-apr-2008 

TOTAL 152,050,058.27 10,549,598.00 

The difference from the requested amount and the transferred one in amount of 

141,500,460.27 Euro, will be subjected to the transfers from the European 

Commission from the budget of 2009, after the implementation of the ”Action plan for 

the implementation of DG AGRI’s recommendations following the monitoring mission 

from 3rd-13 th of June 2008”. 

109


Moreover, in 2008, EC reimbursed to Romania the expenditures fulfilled and declared 

to EC in the 3 rd and 4 th quarter 2007, in amount of 77,933,537.00 Euro. 

The conclusion is that during 2008, in the Euro SAPARD account were reimbursed 

amounts from EC totalising 88,483,135.00 Euro. 

III. 2.1.3 Written-off debts according to art. 14 (2.8) from Section A of the MAFA 

annex 

The written-off debts according to art. 14 (2.8) from Section A of the MAFA annex 

have been mentioned in Tabel A4 –„Cancelled debts according to art. 14 (2.8) from 

Section A of the MAFA annex and deducted from the present Declaration” (attached 

to each Declaration of expenditure and Request of Funds). 

In the table below, we present the written- off debts according to art.14 (2.8) from 

Section A of the MAFA annex stating that, only the value of the debt belonging to EC 

contribution was cancelled and deducted from the Declarations of expenditure 

submitted to EC. According to NF’s procedures, the Euro SAPARD account was 

replenished with amounts from the state budget representing the amount of the 

cancelled debt belonging to EC contribution. 

As about the debt no. 114, although it was written off, in short time it was recovered 

from the beneficiary and consequently, it was deducted from Declaration of 

Expenditure no. 34 (recorded at point 23 of Table A2 – “Debts recovered” attached to 

the Declaration). 

Table III.2 

No. 

1 

2 

3 

4 

5 

6 

7 

8 

9 

10 

11 

12 

13 

No/Debt 

date 

108/18.02.2 

006 

110/24.02.2 

006 

115/28.02.2 

006 

114/28.02.2 

006 

117/13.03.2 

006 

118/22.03.2 

006 

121/10.04.2 

006 

123/14.04.2 

006 

129/15.05.2 

006 

144/19.07.2 

006 

153/12.09.2 

006 

159/17.10.2 

006 

161/25.10.2 

006 

Irregularity 

code 

192 

194 

199 

198 

201 

202 

RO/06/019/S 

RO/06/021/S 

RO/06/027/S 

RO/06/042/S 

RO/06/053/S 

RO/06/059/S 

RO/06/061/S 

Beneficiary 

CL Tuzla, jud. 

Constanţa 

CL Bălăneşti, jud. 

Gorj 

CL Mahmudia, jud. 

Tulcea 

CL Golăeşti, jud. 

Iaşi 

CL Tartasesti, jud. 

Dambovita 

CL Sanmartin, jud. 

Bihor 

CL Brebu, jud. 

Prahova 

CL Susani, jud. 

Vâlcea 

PFA Maftei Tiberiu 

CL Pângăraţi, jud. 

Neamţ 

CL Săcelu, jud. Gorj 

CL Săcelu, jud. Gorj 

PFA Tamaş Iulian, 

jud. Bacău 

Approval 

date by 

NAO 

311248/ 

28.02.2008 

311776/ 

24.03.2008 

311777/ 

24.03.2008 

311778/ 

24.03.2008 

312036/ 

11.04.2008 

312110/ 

11.04.2008 

312510/ 

06.05.2008 

312517/ 

07.05.2008 

313495/ 

30.05.2008 

314916/ 

08.08.2008 

317196/ 

24.10.2009 

317196/ 

24.10.2008 

317868/ 

27.11.2008 

Cancelled 

amount 

belonging to 

EC 


(lei) 

Cancelled 

amount 

belonging to 

EC 


(Euro) 

9,918.67 2,747.48 

10,075.50 2,790.92 

64,031.82 17,736.85 

1,458.96 404.13 

4,295.18 1,227.37 

329,119.87 94,047.68 

57,762.75 16.409,41 

2,047,732.03 581,725.53 

11,250.00 3,237.41 

14,358.91 4,003.82 

440,916.73 124,806.59 

1,212.75 342.58 

5,225.51 1,476.09 

2,997,358.68 850,955.87 

Declaration of 

expenditure and 

Request of funds 

from which it 

was deducted 

Decl. no 34/2008, 

Table A4 

Decl. no 34/2008, 

Table A4 

Decl. no 34/2008, 

Table A4 

Decl. no 34/2008, 

Table A2 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

Decl. no 36/2008 

Table A4 

110


The PARDF is also in charge with the recovery of these debts according to 

Government’s Ordinance no. 79/2003 regarding the control and the recovery of the 

Community’s funds, as well as of the co-financing ones, irregularly used, with the 

subsequent modifications and completions, the prescription of the recovery of the 

debt occurring in the terms of the national legislation. 

According to the procedure, the National Fund replenished the Euro SAPARD 

account with the total amount of 850,551.73 Euro (it was not included the debt 114 

for the reasons mentioned above) with amounts from the state budget. 

III. 2.1.4 Payments from the National Fund to PARDF 

The PARDF prepared and submitted to the National Fund requests for funds twice 

per month. During 2008, the National Fund transferred to PARDF a total amount of 

193,744,487.56 Euro as representing EC contribution for SAPARD Programme. 

III. 2.1.5 The use of the Buffer Fund 

Due to the exhausting of the available amount in Euro SAPARD account, determined 

by the time difference between its use and their reimbursement by the European 

Commission (EC), and of the suspension of the payments by EC, the National Fund 

transferred to PARDF an amount of 141,629,043.84 Euro. On 31.12.2008 it should 

have been replenished the buffer fund account with the amount of 117,663,669.13 

Euro. This amount is to be returned to the state budget as soon as it will be restarted 

the EC payments to Romania. 

III. 2.2 Accreditation monitoring during 2008 

III. 2.2.1 European Commission's informing regarding the changes of procedures of 

PARDF and National Fund 

According to the stipulations of art. 6 of the EC Regulation no. 248/2007 regarding 

the measures concerning the multi-<strong>annual</strong> financing agreements and the <strong>annual</strong> 

financing agreements signed on the basis of SAPARD Programme, as well as to the 

transition from the SAPARD Programme to the programmes for rural development, 

the National Authorising Officer (NAO) informed the European Commission as soon 

as it was proposed any modification in the implementing of SAPARD Programme 

during 2008. 

Following the monitoring mission performed by DG AGRI in June 2008 and as a 

consequence of the recommendations regarding „the strengthening of the monitoring 

role of the competent Authority towards PARDF ”, the National Fund took measures 

by modifying its procedures, as it follows: 

a) Instruction 21 – for the modification of the NF manuals of procedures, approved 

by NAO and sent for information to EC on 24.09.2008 by the letter no. 319183. This 

instruction referred to a completion of the existing procedure with a checklist for the 

proposals of PARDF to modify the procedures and the organisational structure and 

approval procedure by NAO of the modifications proposed by PARDF. Also, with 

111


respect to the monitoring of the accreditation criteria, on a monthly basis PARDF 

submits to NF supervising <strong>report</strong>s of the Regional Centres, Counties' Offices and on 

a quarterly basis, the stage of implementing the recommendations from the audit 

<strong>report</strong>s. 

Moreover, it stipulates that PIAD within MPF will perform <strong>annual</strong>ly in this purpose, two 

audit missions on the maintaining the accreditation criteria by PARDF. Also, it was 

settled a system of monthly meetings with the management and/or experts of PARDF 

so that to identify possible deficiencies and to take the measures in order to solve 

them. As a consequence of these modifications, it was amended the Agreement 

between the National Authorising Officer, official leading the National Fund within 

Ministry of Public Finance in Romania and SAPARD Agency, signed in Bucharest on 

19.06.2002. 

b) Instruction 22 – for the modification of the <strong>annual</strong> procedures of NF, approved by 

NAO and communicated to EC on 04.11.2008 by the letter no. 317370. By this 

instruction it was updated the NF procedure regarding the human resources with the 

legal stipulations in force regarding the appointment and the promoting of the public 

servants. 

c) Instruction 23 - for the modification of the <strong>annual</strong> procedures of NF, approved by 

NAO and communicated to EC on 07.10.2008 by the letter no. 316613. By this 

instruction it was described the procedure for the payment from the state budget of 

the financial allocations overrun against the technical fiches of the measure (in 

NPRD). 

During 2008, it was submitted to EC one instruction for the modification of the 

manuals of procedures of PARDF namely Instruction 118, modifying all the manuals 

of procedures of PARDF. This was issued in order to implement the 

recommendations of DG AGRI, following the monitoring mission from 3-13.06.2009. 

We must state that this was evaluated both by the Internal Audit Directorate (IAD) 

within PARDF, by NF and by the Public Internal Directorate (PIAD), according to the 

new procedures of NF (namely, Instruction 21). On the basis of the favourable 

notification of IAD, PIAD, NF, NAO approved this instruction. Also, it was approved 

the consolidated manuals of procedures with the previous instructions, including 

Instruction 118, issued by PARDF. Instruction 118, together with the consolidated 

manuals of procedures, was sent to EC on 25.09.2008 by the letter no. 316295. 

Also, following the recommendations of DG AGRI, NAO approved the accounting 

software PROSYS of PARDF, based on the <strong>report</strong> of the independent expert 

(Delloitte) regarding „The audit of the accounting software PROSYS of APDRP” by 

which it was offered the ensurance that it is issued and works according to the 

internationally accepted standards and according to the minimum standards of 

security of the information. EC was informed about this approval and it was submitted 

the Audit Report of Deloitte on 28.11.2008 by the letter no. 317385. 

Following the recommendations submitted by the auditors EC-DG AGRI, as a result 

of the monitoring mission of SAPARD Programme in Romania, during June, 3-13 

2008, the national payments to the beneficiaries were suspended. NAO imposed to 

PARDF some conditions according to which these payments will be realised from the 

state budget. 

112


These conditions were mainly pointing out the improvement of PARDF procedures 

and also to ensure a sufficient number of trained staff so that it is ensured that the 

large number of requests of funds, registered by PARDF during the period when the 

payments were suspended, will be processed in time and accordingly. Only after the 

fulfilment of the conditions and the communication to EC of the Instruction no. 118, 

on 25.09.2008, it has been restarted the national payments from funds belonging to 

the state budget for the beneficiaries of SAPARD Programme. 

III. 2.2.2 Audit mission requested by NAO 

Internal audit mission 

During 15.01.2008-15.03.2008, the Internal Public Audit Directorate (PIAD) within the 

Ministry of Public Finance performed an audit mission regarding the Instruction no. 

104 issued by PARDF, evaluating the conformity of this Instruction according to 

MAFA. The opinion of the auditors was that Instruction no. 104 is not trespassing art. 

5(1), Section A from MAFA annex and by its application there were not affected the 

financial interests of EC. 

Requested by NAO, PIAD performed during 01-10.09.2008 an audit mission 

regarding ”The auditing of the application of the instructions and circulars issued by 

PARDF” by which it was confirmed to NAO that it cannot be obtained the ensurance 

that PARDF applied them after having them communicated to EC and moreover, 

there were issued circulars that might be considered as modification of procedures. 

There have been made recommendations for PARDF that, together with the ones 

received from EC, leaded to the improvement of PARDF methodology manual of 

procedures. 

Also, in order to implement the EC recommendations regarding the ensurance by NF 

that all the projects have been approved or rejected according to the approved 

procedures, NAO requested to PIAD an audit mission concerning the application of 

the instructions and circulars issued by PARDF, mission that took place during 01.09- 

10.10.2008. The specific objective of the internal audit mission was to evaluate the 

possible impact of the instructions and the circulars issued by PARDF concerning the 

implementation of SAPARD Programme. As a consequence of this to this mission it 

was settled the instructions and the missions having specific content as the 

instructions with possible financial impact upon the projects. 

External audit missions 

Also, following the request of EC, NAO requested to the Audit Authority within the 

Romanian Court of Accounts, to effectuate an audit mission in order to confirm to 

NAO that the Action plan for implementing the recommendations of DG AGRI 

following the monitoring mission from 3-13.06.2009, was implemented. 

The Audit Authority accepted and fulfilled the audit mission during 01.09-04.11.2008 

finalized by the Audit Report by which it was issued the opinion according to which 

EC recommendations have been implemented according to the action plan but it 

must be improved the strengthening of the control upon the correctness and the 

completion of the information enclosed in the data base with SAPARD 

rejected/contracted/paid/cancelled projects and upon the accuracy and veridicity of 

113


the recordings from the Debtors' Ledger and the Register of the written-off debts and 

CPA must monitor the activities concerning the accreditation criteria. 

Based on this <strong>report</strong>, NAO considered the Action Plan implemented but, having in 

view that there are certain aspects not-implemented she requested to the Audit 

Authority a follow-up mission. The <strong>report</strong> was submitted to EC on 07.11.2008 by the 

letter no. 317471. 

III. 2.3 Clearance of accounts 

III.2.3.1 The decision of clearance of accounts for 2007 

According to the Multi<strong>annual</strong> Financing Agreement, the National Authorising Officer 

submitted to EC the ”Annual Declaration of Accounts for the Year 2007”, 

accompanied by the Certificate and the Audit Report for 2007 of the Certifying Body, 

on 12 th of May 2008, by the letter no. 311807. 

Following the EC clarification requests in the letter no. 17426/15.07.2008, the Audit 

Authority issued a new Auditing Certificate for the financial year 2007, submitted by 

EC on 17 th of November 2008 by the letter no. 317787. 

III. 2.3.2 The conformity decision 

During 2008 it continued the procedures stipulated in MAFA concerning the 

Conformity Decision for the financial years 2006 and 2007, for which the Romanian 

authorities prepared and submitted to EC additional information and explanations 

regarding the EC recommendations following the audit mission. 

1. On 31.01.2008, NAO together NF and PARDF representatives participated in 

Bruxelles to a bilateral meeting in order to analyse the outstanding aspects 

concerning the DG AGRI findings following the audit mission during 18-22.09.2006. 

Later on there were communicated to EC supplementary information on 12 th of May, 

2008 by the letter no. 312050 

2. On 01.04.2008, representatives of NF and PARDF participated in Bruxelles to a 

bilateral meeting in order to analyse the outstanding aspects concerning the findings 

and the recommendations from the Audit Certificate issued by the Audit Authority for 

the financial year 2006. Later on there were communicated to EC the supplementary 

information on 26 th of May 2008 by the letter no. 312788. 

3. On 16.10.2008, representatives of NF and PARDF participated in Bruxelles to a 

bilateral meeting in order to analyse the outstanding aspects concerning the DG 

AGRI findings following the control DG AGRI RDG/2007/022 for the measures 1.1, 

2.1, 3.1 

III. 2.4 Irregularities <strong>report</strong> 

NAO submitted the quarterly <strong>report</strong>s of irregularities to the Fight against Fraud 

Department (DLAF), according to the Multi-<strong>annual</strong> Financing Agreement and the 

protocol signed with this structure, as it follows: 

114


• The irregularity <strong>report</strong> for the quarter I 2008, issued by NAO to DLAF on 

16.05.2008 and by DLAF to OLAF on 29.05.2008; 

• The irregularity <strong>report</strong> for the quarter II 2008, issued by NAO to DLAF on 


• The irregularity <strong>report</strong> for the quarter III 2008, issued by NAO to DLAF on 


• The irregularity <strong>report</strong> for the quarter IV 2008, issued by NAO to DLAF on 

27.02.2009 and by DLAF to OLAF on 27.02.2009. 

Also, when there were received notifications from the Fight against Fraud Department 

(DLAF), from the internal audit of the National Fund or from any other entity, 

concerning the possibility of an irregularity with respect to obtain, manage or use the 

funds of SAPARD Programme, both the ones from the budget of the European Union 

as well as from the correspondent co-financing, it was requested to PARDF to take all 

the necessary measures in order to verify the information and, if case, to recover the 

amounts settled as debts according to the Government Ordinance no. 79/2003 

regarding the control and the recovery of the Community's funds, as well as of the 

corresponding co-financing funds irregularly used, with the modifications and the 

consequent completions. 

III. 3 Paying Agency for Rural Development and Fishery activities 

During 2008, the activity of the Paying Agency for Rural Development and Fishery 

(PARDF) was focussed on achieving two main objectives, namely, the continuation of 

the institutional building process, necessary to perform the function of paying agency 

for the rural development projects financed under EAFRD, as well as the continuation 

of SAPARD Programme implementation. 

In order to achieve both objectives, PARDF took into consideration the development 

of the allocated human resources, the increase of the training level, the elaboration 

and adjustment of the specific work procedures, as well as, the improvement of both 

the endowment and branches’ premises. 

III. 3.1. Audit missions performed by the Internal Audit Directorate (IAD) 

In 2008 the Internal Audit Directorate has performed the following types of activities / 

audit missions: 

‣ Audit missions carried out according to the Annual Audit Plan for 2008; 

‣ Ad – hoc audit – missions requested by the General Director of the Agency; 

‣ Ad – hoc audit missions to follow up the external auditors’ recommendations; 

‣ Other follow up, evaluation and monitoring activities. 

The audit missions performed by the Internal Audit Directorate during 2008 included 

checks as regards: 

• The manner of observing the procedures for the implementation of the 

Measures 1.2, 3.2, 3.3 („100% Re-performance”) and the follow up of the 

recommendations related to these verifications; 

• The completeness, the accuracy and the veracity of the Agency’s accounts for 

the years 2006 and 2007; 

115


• The manner of observing the public procurement procedure for the projects 

related to the Measure 2.1 of the regions affected by natural disasters; 

• Assessing the PROSYS software application; 

• Assessing the manner of establishing the public procurement procedure (G3 

ACP) applicable to the procurements performed by the beneficiaries of the 

Measures 1.2 and 2.1 during 2007; 

• Identifying the causes which led to the emergence of the differences between 

the Agency’s directorates records for the projects financed by SAPARD 

Programme; 

• Assessing the audit trail for the instructions and circulars letters issued in order 

to amend the procedures for the SAPARD Programme’s implementation; 

• Assessing the Procedure Manual for recording and recovering the debts G8 

IRD; 

• Assessing the proposals to amend the payments’ execution procedure, G6 – 

EP; 

• Assessing the proposals to amend the procedures drawn up for the 

implementation of the SAPARD Programme in compliance with the provisions 

of the MARD’s Order no. 63/2008; 

• Assessing the proposals for the modifications and completions of the 

procedures drawn up for the implementation of the SAPARD Programme in 

compliance with the European Commission’s recommendations by letter no. 

16.859/09.07.2008; 

• Following up the recommendations and observations made by authorized 

external entities, namely: European Court of Auditors, European Commission’s 

auditors, Audit Authority from the Romanian Court of Accounts, Ministry of 

Public Finances – Internal Public Audit Directorate, Control Department of the 

Government, MAFRD’s General Directorate for Technical Inspections and 

Control. 

The activities carried out by the Internal Audit Directorate during 2008, were planned 

and executed according to the Annual Plan for 2008 and to the Internal Audit 

Strategic Plan for the period 2008 – 2010 for the SAPARD Programme, in order to 

provide to the management a reasonable assurance on the following aspects: 

• The structure and the process of verifying the conformity and the eligibility of 

the projects for Measures 1.1, 1.2, 2.1, 3.1, 3.2, 3.3, 3.4, 3.5, 4.1 and 4.2 are 

functional, as provided in the procedures; 

• Agency’s aims are performed at the required standards and are in compliance 

with the accreditation criteria foreseen in the Multi – Annual Financing 

Agreement between the European Community and Romania for SAPARD; 

• The Agency’s procedures are observed by the Agency’s staff; 

• The European Commission’s financial interests are protected; 

• The internal controls relating to the pre-authorization of the project, prepayment 

verifications, the accounting and the payment procedures of the 

Agency are functional and provide a reasonable assurance on the process; 

• The projects are assessed in compliance with the accredited procedures both 

during the technical implementation stage, as well as during the financial 

implementation stage; 

• The conclusions regarding the eligibility of the financing applications and the 

authorization of the payment claims are correct. 

116


Following these audit missions, Internal Audit Directorate issued audit <strong>report</strong>s that 

were submitted to the management of Paying Agency for Rural Development and 

Fishery, to the National Authorizing Officer, to the Audit Directorate within MAFRD, to 

the external auditors within Audit Authority - Romanian Court of Accounts, the 

Ministry of Public Finance – Internal Public Audit Directorate and European 


The main findings and recommendations with the high level of importance drawn up 

as a result of the audit missions and presented in the audit <strong>report</strong>s for year 2008 

address to the following deficiencies: 

Execution of an overpayment 

We found that in case of a payment claim for Measure 1.2 submitted to PRCRDF 

Timis an amount larger than the due one was approved to be paid. 

IAD recommended to take into account the amount unduly paid by deducting it from 

the next payment instalment or by making a debt to recover the amount. 

The recommendation of high importance level has been implemented by making a 

debt for the overpayment and its recovery. 

The principle of sound financial management was not observed according to MAFA’s 

provisions, Section B, article. 4 

For 3 projects from region 3 Târgovişte and for all the projects from Region 4 Craiova 

we identified that the on-the-spot verifications were not completely performed or the 

verifications regarding the reasonability of the prices of the materials and works were 

not performed. 

The recommendations comprise the followings: 

• to consult the database by the experts from the Regional Centers 3 Târgovişte 

and 4 Craiova and if the prices for certain services/materials/works are not 

found, the verifying experts get the information from other sources, attaching 

them as justifying documents and mentioning in the sheet for the contract’s 

verification the manner for comparing the reasonability of the prices for the 

projects verified; 

• SCD – AS and PRCRDF make regular proposals for filling in / change / update 

the database with reference prices of materials / works / services which are 

not found or which are found by the verifying experts as not reasonable; 

• the SCD – AS’s experts must re-verify the reasonability from the awarded 

tender for the projects from Region 4. If it is found that these prices are not 

reasonable, the work/services’ contracts are not to be approved or their value 

must be reduced. 

Based on the received responses, the audit’s opinion on the recommendations is as 

follows: 

• the recommendation regarding the consultation of the database with reference 

prices has not been implemented; 

• the following recommendation will be under monitoring as regards the projects 

submitted under EAFRD. It refers to the regular proposals made by SCD – AS 

and PRCRDF’s staff for filling in/change/update the database with reference 

117


prices of the materials/works/services which are not currently found there or 

for which the verifying experts consider that are not reasonable; 

• the recommendation regarding the re-verification of the projects from Region 4 

by experts SCD – AS was not agreed with. 

Filling in and/ or clarifying the procurements procedures 

In the Circular Letter no. 164/ 30.08.2006 by which the public procurement procedure 

G3 – ACP, version 010 with “Alternative 3 – package tender for the design services 

and works’ execution” was amended, it is stipulated that “the documentation for the 

financial tender for works will be drawn up in unit prices divided by material, labour, 

equipment and transport without any technical project.” 

The observations of IAD mention that the circular letter does not provide the 

followings: 

• the deadline for drawing up and submitting the technical project to the 

Regional Centres; 

• the persons in charge and the deadlines for performing the verification 

regarding the compliance between the awarded tender and the technical 

project. 

IAD recommended that for the projects for which the provisions of the circular letter 

no. 164/30.08.2006 are applicable, SCD’s management shall establish and inform the 

Regional Centres and beneficiaries with regard to: 

• the deadline for performing and submitting the technical project to the 

Regional Centre in order to meet the deadlines for implementing the 

investments from the financing application; 

• the persons in charge and the deadlines that the verification of the compliance 

between the awarded tender and the technical project must be carried out. 

The audit’s opinion: 

The recommendation was considered closed taking into account that on the date that 

the audit <strong>report</strong> was issued, the public procurements procedures for measure 2.1 

were completed in percentage of 94%, despite the fact that measures for its 

implementation had not been taken. 

The discrepancies between the procedures’ manual G8 - IRD and other PARDF 

procedures elaborated for the SAPARD Program or other documents from the 

national legislation 

There are discrepancies between the procedures’ manual G8 – IRD and the control 

and anti-fraud procedures’ manual G9 – CA regarding the following aspects: 

• the suspension of the payments; 

• the preliminary control and verifications regarding the intimations from the 

bodies in charge with control/investigations tasks, performed by CAD; 

• CAD exclusive expertise to analyze the irregularities received both from inside 

and outside PARDF, to update the procedure with national legislation 

concerning the recovery of the debts and with the provisions of the circular 

letter no. 152/2006, to draw up documents no longer necessary in the flow; 

118


IAD recommended the correlation of the provisions from the two manuals in order to 

unitary apply the procedures, namely in order to prevent the double verifications. 

The recommendation was implemented. 

The provisions of the national legislation in force regarding the public procurements 

have not been observed. 

IAD found that in the case of 5 projects under measure 2.1 and 8 projects under 

measures 1.2, for which certain procurement procedures were launched after 

January 1 st , 2007 (call for tender 2007), the provisions of the national legislation 

regarding the public procurements were not observed. Thus, the provisions of MAFA 

and the European Commission’s notifications, regarding the rules applicable after the 

date of the Romania’s accession to the European Union, have not been observed. 

IAD recommended to exclude from the statement of expenditures the amounts 

already paid for the procurements related to the projects concerned and not to 

include in the statement the next amounts for the procurements to be paid. 

Recommendation not implemented. 

Lack of assurance measures 

IAD found that PARDF decided the cancellation of the tenders in process according 

to the manual drawn up based on the Commission’s manual in the case of 5 public 

beneficiaries and re-launched the tenders according to the provisions of the national 

legislation, without elaborating a monitoring plan for the implementation of the 

projects in order to meet the established contractual deadlines. 

We recommended to closely monitor the implementation of these projects in order to 

assure their finalization within the deadlines initially established by the Financing 

Contract 

The recommendation was implemented. 

Use of a procedure manual that does not observe the requirements of the European 


It has been found that by the end of February 2007, the procedures manual on the 

public procurements was not drawn up according to GEO no. 34/2006, although the 

Agency was informed by the European Commission by letter no. 35029/ 22.12.2006 

that the provisions of the Regulation for the transition from SAPARD Programme to 

the post-accesssion rural development programmes related to the public 

procurement procedures shall be retroactive applicable starting with the accession 

date. At the same time, the Agency was also informed that the draft version of the 

Regulation including the retroactive application clause was positively endorsed within 

the STAR Committee on November 2006. 

IAD recommended to further analyze the legislation modifications as soon as the first 

information regarding these modifications and their impact on the procedures are 

received, in order to prevent similar situations. 

The recommendation was not agreed. 

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Incomplete procedural provisions 

IAD found that the procedural provisions related to the insertion, identification and 

correction of the wrong or incomplete information in the system are inconsistent. 

IAD also found that the procedural provisions are aiming only at the elimination of the 

possibility to electronically process the wrong information, but there is no proper 

framework for diminishing the rate of the errors caused by the insertion of wrong or 

incomplete information. 

The quality of the information in electronic format was influenced by the degree to 

cover certain specific necessities: 

- the management process of the information within the system, namely their 

proper organization, exploitation and protection; 

- the supervision of the activity for inserting, extraction and <strong>report</strong>ing the 

information, namely there is no supervision related to the compliance of the 

data inserted in the system with the initial documents. 

It has been recommended to establish procedural norms specific to assure the quality 

of the information inserted in the system. These norms must assure the accuracy, 

integrity, completeness, consistency and reliability on the information from the 

collection areas. 

Not implemented recommendation 


We found that CD – MERU collects, processes, centralizes and transmits different 

information to entities within PARDF and to MA, although there are no procedural 

provisions in this respect. The information collected from the regional level and 

processed by CD – MERU are received only in electronic format, thus there is no 

certainty that the information are correctly collected and supervised. 

We recommended taking the measures for including in CD – MERU procedure of 

certain provisions in order to cover the activities carried out at present outside the 

procedural provisions. 

The recommendation was implemented 


IAD identified the following deficiencies in the manner the monthly reconciliations 

related to contracts and addenda concluded by the Agency are processed: 

• the units involved in processing the reconciliations (SCD-CU, PPD-PAcU, CD- 

MERU, TAD) do not fill in a sole reconciliation form; 

• the reconciliation between CD-MERU and SCD-CU is performed by CD-MERU 

taking over the database transmitted by SCD-CU and comparing it with the 

amounts from CD-MERU – amounts taken over as well from SCD-CU; there is 

no other independent source for comparing the amounts related to contracts; 

• the differences are explained by CD-MERU and aim at rounding up the values 

of the contracts generated by denomination, but these differences turn in tens 

of lei, with the risk of growing; this fact is not noticed in the reconciliations 

between SCD-CU and PPD-PAcU; 

• another explanation of the differences between the reconciliations CD-MERU 

and SCD-CU is the cancelled contracts which are taken over in the database 

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by CD-MERU on the month the cancellation has been performed and by SCD- 

CU and PPD-PAcU on the moment PPD receives the notice on the 

cancellation; 

• the differences within the reconciliations for the cancelled contracts occur also 

due to the transmission with delay of the notices regarding the cancellations 

due to the large period of time necessary to process the de-commitment of the 

amounts following the cancellation (signature by OPFCU, credit ordinator, 

etc.); 

• the registrations in SCD-CU database of the contracts, addenda, cancelled 

contracts or processing the de-commitments of amounts, are not performed 

when the related documents are received, but at the end of the reconciliation 

month or at a certain period of time, by a single person within the unit, fact that 

affects the operativity of this activity and may generate errors independent 

from the responsible expert’s will; 

• the reconciliation between SCD-CU and CD-MERU is performed during the 

month related to the reconciliation (current entries) without performing a 

reconciliation of the global values of the contracts under SAPARD Programme, 

thus there is a risk not to find a possible error in a prior month; 

• the reconciliation of the contracts and addenda (CP 18.J.1.) between PAcU, 

SCD and TAD exceeds the procedural framework because in the case of the 

lists with the contracts and addenda which are the object of the reconciliations, 

their acknowledgment by signature, by the persons responsible within the 

involved parties is not proved, or the names of the persons who sign them are 

not specified. 

IAD recommended the followings: 

1. To perform reconciliations between the three units involved in the process of 

<strong>report</strong>ing the amounts contracted under SAPARD Programme (SCD-CU, PPD-PAcU, 

CD-MERU), on a single form. The form should include the explanations of the 

differences occurred, acknowledged by the three units. Thus, all the units shall know 

what differences related to the amounts contracted under SAPARD Programme may 

occur, not only the units performing the reconciliations, as it happens at present (CD- 

MERU and SCD-CU or SCD-CU and CD-MERU). At the same time, we 

recommended to perform the reconciliations monthly on current entries and also on 

the global amounts registered from the start of the programme up to present. 

2. In case the differences from the reconciliations, which are the result of rounding up 

the values of the contracts following the denomination, tend to be significant, we 

recommend to take the measures for identifying the contracts generating these 

differences and to correct the amounts in all databases at PARDF’s level. 

3. To establish the moment the registration related to the cancelled contracts has to 

be operated in the database, in order to avoid such differences within the 

reconciliations, considering the gaps generated by the conclusion and approval of the 

“Proposal for committing expenditure”. 

4. In order to register in the database of SCD-CU and to perform the reconciliations 

regarding the contracted amounts, it is necessary to allocate more experts for this 

activity. 

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5. It has been recommended that all the <strong>report</strong>s drawn up at units/ directorates level 

to include the position, name and signature of all the persons involved. 

Based on the answers received, the audit’s opinion regarding the recommendations 

is the following: 

1. Not implemented recommendation; 

2. Implemented recommendation; 



5. Implemented recommendation. 


It has been found that after the payment of the last instalment to the beneficiary, in 

case there is a difference between the contracted value and the total paid value, in 

lack of a document to perform the de-commitment of the remaining amount, there is a 

large period of time the amount is unavailable to be re-committed for other contracts. 

IAD recommended taking into account the measures for shortening the deadline for 

the de-commitment of the unused amount by monitoring the beneficiaries’ appeal 

deadline and by launching the procedure for de-committing these amounts. 

IAD considered the recommendation closed for SAPARD implementation as the 

funds absorption degree can no longer be affected. 


As regards the elaboration of the “Statement of expenditure”, we found the following 

deficiencies: 

The statement is drawn up manually by collecting the information directly from the 

justifying documents, thus being a risk to omit certain registration or writings of 

numbers no longer available; 

The statement is drawn up by a single person (head of PAcU), without any proof of 

his/hers supervision. 

This finding has been also mentioned before other audit missions, when a series of 

errors related to the Statement of Expenditure were found. 

IAD recommended the followings: 

1. Involving more persons in drawing up of the Statement of Expenditures in order to 

assure a proper control and expertise level. 

2. Inserting a <strong>report</strong> to be the base of the State of expenditure. The <strong>report</strong> should be 

given by the accounting software, based on the accounting information. 

Based on the answers received, the audit’s opinion regarding the recommendations 

is the following: 

1. Implemented recommendation ; 

2. Partially implemented recommendation, as the software does not generate the 

Statement of Expenditures. 

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Deficiencies in communication 

As regards the use of the payment authorization procedures IAD found that there are 

different versions of these procedures at PCORDF and PRCRDF levels (PRCRDF – 

June 11 th 2007, PCORDF – September 17 th 2007, the official one), due to the 

inefficient communication of the procedural modifications operated in time at 

PARDF’s level, of the modifications operated in track-changes and of the information 

regarding the usage of the procedures posted on the common field fileserver 

allocated to the Methodology Unit. At the same time, there is no acknowledgment 

table for the experts within PRCRDF and PCORDF regarding the procedural 

modifications. 

IAD recommended the improvement of both the communication process and of the 

transmission of documents between the entities at PARDF’s level, as well as the 

strengthening the internal control. 

Recommendation partially implemented. 

III. 3.2 Control missions performed by Control and Antifraud Directorate 

According to the accredited procedure, the Control and Antifraud Directorate (CAD), 

under the direct subordination of the general director of PARDF, carries out technical 

and financial verifications of the projects in terms of their certification, conformity, 

eligibility, selection and payments, maintenance of the eligibility on a 5-year period of 

time and also in terms of internal control in order to prevent fraud and also to assure 

the proper use of funds, observing the quality requirements defined in the project. 

The main control activities consisted in: 

I. The verification of the projects during the implementation and execution stage; 

II. The verification of the projects after the last payment (the ex-post verification). 

A. The verification of the projects during the implementation and execution 

stage 

1. Random sample control of the projects both before and after the last payment; 

2. Solving, in the limit of its competences, of the petitions, intimations, appeals 

and notifications received from PARDF, from beneficiaries, natural or legal 

persons, the involved institutions, mass-media or self-intimations, including the 

ones on quality works within Measure 2.1 and the other measures; 

3. Analysis and monitoring of irregularities received from the other 

directorates/units involved in the verification and control activities and <strong>report</strong>ing 

them to the European Commission through the National Fund within the 

Ministry of Public Finances; 

4. Analysis, documentary verification and, by case, on-the-spot verification of 

intimations/requests received from other control bodies, OLAF, DLAF, NAD 

(National Anticorruption Directorate). 

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At the same time, during 2008, through its councillors, the Control and Antifraud 

Directorate took part in: 

• Commissions for the verification of certain projects’ implementation, to 

establish the damage and elaborate the Finding Minutes with the 

acknowledgment of a debt and the enforcement value, based on Government 

Ordinance No. 79/2003 (approximately 35 control activities); 

• Committees for solving the appeals to the minutes (approximately 40 appeals) 

and issuing the final Decisions according to the Government Ordinance’s 

provisions no. 79/2003. 

1. The random sample 

The random sample was established based on the “risk analysis method” of the 

control and anti-fraud procedure, on a percentage of 5% of the total eligible amount 

contracted on measure 3.1 and on a percentage of 10% of the total eligible amount 

contracted on measures 2.1 and 3.5. 

The random sample was determined for each PRCRDF, based on the total number of 

contracted projects and the values of these projects, taking into account the provision 

of the control procedure as: 

• 30% of the projects included in the random sample to be verified before the 

first payment; 

• 70% to be verified after the first payment was made. 

1.1. The random sample on measure 3.1 

Initially, all the 1,508 projects contracted between October 2005 and June 2007 were 

taken into consideration. Following the analysis, 76 projects to be verified were 

resulted, distributed in two stages: 

• 27 projects in the first stage, between September 10 th , 2007 – December 15 th , 

2007; 

• 49 projects in the second stage between March 15 th , 2008 and July 15 th , 2008. 

During the second stage, the 1,020 finalized projects were identified and it was found 

that 368 projects were not finalized. Following the verification of the projects included 

in the random established in August 2007, it was found that of the 49 projects, 19 

projects were finalized, thus, 30 projects remaining to be verified. 

The control missions established for the projects included in the random sample 

examined during the second stage, Measure 3.1, were carried out in compliance with 

the Control Plan approved and registered at PARDF Bucharest with no. 

3556/01.03.2007. 

It must be mentioned that one of these projects was cancelled after the approval of 

the Control Plan, so the control had not been necessary. 

Following the verification of the 29 projects of the approved Control Plan, the situation 

is as follows: 

a) The projects to which the irregularities were not found or the found 

irregularities have no financial implications – 27 projects, namely 93.10%; 

b) The projects where the irregularities with financial implications were found – 2 

projects, namely 6.90%; 

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Observation: There were considered irregularities with financial implications only the 

irregularities which supposed to make a debt following the control. 

1.2. The random sample on measure 2.1 

In order to establish the sample on measure 2.1, all the 252 projects contracted 

between January 1 st , 2006 and May 31 st , 2008 were taken into consideration, 

resulting 26 projects, namely 10.32%. The on-the-spot control of these projects was 

carried out between September – November 2008, according to the Control Plan 

approved and registered at PARDF Bucharest with no. 15963/28.08.2008. 

Following the control performed on the 26 projects, the control <strong>report</strong>s have been 

drawn up and approved by the general director, for all projects, the situation being as 

follows: 

a) Projects where irregularities were not found or the irregularities found have no 

financial implications - 23 projects, namely 88.5%. 

b) Projects where irregularities with financial implications were found – 2 projects, 

namely 11.5%. Reporting the amount of the debt made of 259,262.17 Lei to 

the total eligible amount of 26 projects from the sample of Lei 145,068,889.0, 

the debts made represent a percentage of 0.17%. 

Observation: Only the irregularities involving debt making following the control were 

considered irregularities with financial implications. 

The cases in which at the payment instalments made until the control (3 of 5 payment 

instalments), values representing quota that were not included in the awarded tender 

were discounted, the recalculation for all the payment instalments will be made by the 

involved PRCRDF and from the last payment instalment the amount of the quota 

from the estimate conclusion will be retained, including the expenditures arising from 

this recalculation (indirect costs, profit, VAT) which were considered at this time 

without financial implications. In these cases, the maximum amount overpaid is about 

179,800 Lei (about 2.5% of the total eligible amount cumulative of 2 projects of 

7,191,928 Lei) representing a rate of 0.12% of the total eligible amount of 26 projects 

from the sample. 

Thus, the formed debts represent a rate of 0.17%, which is smaller than the one 

resulted from the number of projects with financial irregularities from the total sample, 

respectively 11.5%. 

1.3. The random sample on measure 3.5. 

In order to establish the sample on measure 3.5, all the 116 projects contracted 

between January 1 st 2006 and May 31 st , 2008 were taken into consideration. 

Following these analysis, 13 projects resulted, namely 11, 21%. The on-the-spot 

control of these projects was carried out between September – November 2008, 

according to the Control Plan approved and registered at PARDF Bucharest with no. 

15962/28.08.2008. 

For the 13 projects documentary and on-the-spot verified, the Control Reports have 

been drawn up and approved by the General Director and the situation being as 

follows: 

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a) Projects where irregularities were not found or the irregularities found have no 

financial implications – 13 projects, namely 100%; 

b) Projects where irregularities with financial implications were found – 0 projects, 

namely 0%; 

Only the irregularities involving debt making following the control were considered 

irregularities with financial implications. 

In a specific case, following the verification of the works’ situation, it was found that 

the constructor included in the estimate, for the second and third instalments (three 

out of five payment instalments had been paid when the control took place) another 

quota (representing the contribution to the state budget) which had not been initially 

included in the awarded offer. The case was considered an irregularity without 

financial implications. Thus, PRCRDF shall recalculate the works situations according 

to the estimate included in the offer and shall hold the related amounts from the next 

payment instalment taking into account the influence the above-mentioned quota 

might have on the indirect expenditures, profit and VAT. 

In case of irregularities as a result of the discovery of certain discrepancy or errors, 

the regional directorates and offices involved were notified to remedy these problems. 

2. Appeals, claims and intimations 

CAD has resolved 34 intimations, claims and appeals relating to: the manner that the 

tenders for goods was performed and awarded, irregularities in works’ execution, 

quality’s works, the differences between PRCRDF - PAU related to a conflict of 

interest in the procurement of the design services, the approval of the Addendum, 

cash payment of the invoices related to the works’ execution, non observance of the 

technical project in the works’ execution, suspected fraud, over-financing, lack of the 

title deed for the land where the investment was executed, non observance of the 

minimum distances admitted between neighbourhoods. For the above-mentioned 

aspects, the followings have been drawn up: 

• 20 control <strong>report</strong>s related to the intimations and appeals; 

• 14 reply letters without drawing control <strong>report</strong>s. 

Following the control <strong>report</strong>s, followings have been drawn up and transmitted: 

• Reply letters to petitioners; 

• Informing letters to the local councils of the authorities that made the 

intimation; 

• Transmission of CAD’s investigations findings to PRCRDF involved; 

• Transmission to PRCRDF of certain notes regarding the obligation to verify if 

the beneficiaries carried out the measures proposed by the Control and Anti- 

Fraud Directorate and to inform CAD on these verifications. 

All these intimations were drawn up and submitted to CAD by: 

• Directorates of PARDF; 

• Central and local public administration institutions (Ministry of Agriculture and 

Rural Development, National Anticorruption Directorate, Financial Guard, The 

Court of Account, etc) 

• Companies participating as a tenderer at the public procurement procedure; 

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• Natural persons (residents of the villages benefiting of the SAPARD 

Programme) 

• Press articles. 

In order to resolve these intimations were carried out: 

• Documentary control; 

• On-the-spot control that consisted in: physical examination and 

measurements, excavations and sampling (existing sand), visual inspection of 

them, verification of the purchased equipment, etc. 

The measures proposed by the Control and Anti-fraud Directorate and submitted to 

the entities involved consisted in: 

• the cancellation of the tender and the re-launching of the procurement 

procedure according to Government Ordinance no. 34; 

• restoration of the damaged works; 

• debt making (over-financing, payment in cash of certain invoices, building site 

inspector works); 

• contract’s cancellation (non-observance of the eligibility criteria); 

• submission to DLAF for investigation (suspicion of forged documents). 

Depending on the results of DLAF’s investigation, the necessary measures 

shall be taken; 

• analysis of the accounting documents related to the works execution contract 

by the Financial Guard; 

If following CAD’s controls, no irregularities were found for the projects, it was 

proposed to continue the implementation of the projects. 

3. Analyzing and monitoring the irregularities 

In 2008, 94 irregularities with financial implications have been found and registered 

following the analysis of the Notes on finding irregularities, transmitted by the 

directorates within PARDF and / or PRCRDF and following the elaboration of the 

Finding Minutes. Out of these irregularities, 40 were made debts as a result of the 

controls carried out by CAD. 

4. Analysis and verification of the intimations/ requests received from other 

control bodies 

• the documentation related to 72 SAPARD projects was transmitted at the 

request of DLAF, NAD and GIP; 

• 124 answers were drawn up at the request of OLAF, NAD, DLAF, GIP, FG, 

Ministry of Internal Affairs and Administrative reform. In order to draw up these 

answers, 14 projects were verified on the spot following the request of NAD, 

OLAF and respectively EC; 

• 11 Information Notes received from DLAF were processed; 

• 42 projects under measure 1.1 were verified documentary following EC’s 

recommendations (DG AGRI and OLAF). 

B. Verification of projects after the final payment (Ex-post control) 

During 2008 the ex-post control was carried out based on two control plans: 

• Ex-post control plan no. 1.350/ 25.01.2008; 

• Ex-post control plan no. 13.904/ 05.08.2008. 

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The centralizing situation of the projects verified ex-post on-the-spot by CAD during 

2008, in compliance with the two control plans, can be found below: 

Measure 

1.1 Improving processing and 

marketing of agricultural and 

fishery products 

2.1 Development and 

improvement of the rural 

infrastructure 

3.1 Investments in agricultural 

holdings 

3.4 Development and 

diversification of economic 

activities 

Number of projects 

verified according to 

Ex-post control plan 

no. 1.350/ 25.01.2008 

Number of projects 

verified according to 

Ex-post control plan, 

semester II- 2008 no. 

13.904/ 05.08.2008 

Total 

5 projects 5 projects 10 projects 




Total 29 projects 32 projects 61 projects 

In conclusion, we would like to specify that during 2008, in compliance with the two 

control plans, CAD – Ex-post Control Unit verified on-the-spot 61 finalized projects, 

distributed on measures as follows: 

• Measure 1.1 – 10 projects; 



• Measure 3.4 – 10 projects. 

As regards the 61 projects verified ex-post on-the-spot during 2008, the followings 

were found: 

• on 10 projects (16,39%) no deficiencies were found; 

• on 29 (47,54%) projects, on the date of the on-the-spot control, deficiencies 

were found. Following the control, the beneficiaries proved the remedy of 

the found deficiencies; 

• on 20 (32,79%) projects, on the date of the on-the-spot control, deficiencies 

were found (e.g. non-compliant advertising banners, not-endorsed 

environment and sanitary authorizations, changing the legal/technical 

responsible without informing PARDF, SAPARD investment was not 

highlighted in the financial – accounting documents, etc.) which were not 

remedied. Thus, these projects are still monitored by PARDF; 

• in case of 2 verified projects (3,28%) the procedure for the recovery of the 

non-reimbursable financial support was launched. 

The Control and Anti-fraud Directorate considers that the <strong>report</strong>ed above irregularities 

do not affect the eligibility of the projects, with the exception of two projects for which 

the procedure for the recovery of the non reimbursable financing assistance was 

launched. 

As regards the monitoring projects, in case the beneficiaries do not comply with 

PARDF’s requests according to the contractual terms, the procedure for the recovery 

of the non-reimbursable financing assistance will be launched. 

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III. 4 The activities of the SAPARD Programme Monitoring Committee 

The Monitoring Committee for the SAPARD Programme was set up according to the 

provisions of art. 7, section B of MAFA, having as main objective to ensure the 

efficiency and quality of the SAPARD Programme implementation. 

The SAPARD Monitoring Committee was set up through the Prime Minister’s 

Decision no. 271/04.04.2001 and has the role of examining the results of the 

Programme, the achievement of the objectives set out for different measures, the 

progress of using the measures’ financial allocations as well as to approve the <strong>annual</strong> 

and final implementation <strong>report</strong>s before submitting them to the European Commission 

and to examine the SPARAD Programme mid-term evaluation. Also, the Monitoring 

Commission may propose to the Commission, via the Managing Authority, any 

amendment or reconsideration of the Programme in order to facilitate the 

achievement of the Programme’s objectives. 

As a structure, the Monitoring Committee is a collective body made up of 

representatives of ministries and public authorities as well as of several professional 

associations and non-governmental organizations. The Committee is also attended 

by European Commission officials, as observers. The president of the Monitoring 

Committee is the minister of agriculture and rural development, and the secretariat of 

the Monitoring Committee is ensured by the Evaluation, Reporting Unit from the 

Directorate General for Rural Development – MAFRD. 

The Monitoring Committee carries out its activity based on an organization and 

functioning regulation which was adopted within the first reunion of the Committee on 

28.11.2001. 

During 2001-2008, sixteen reunions of the Monitoring Committee have been carried 

out, out of which two during 2008. During 2008 one reunion of the MC has been 

organized and a written procedure for approval of the SAPARD Annual Report for 

2007. 

Following the consultations with the European Commission’s officials it was decided 

that the approval of the 2007 SAPARD Annual Report by the Monitoring Committee 

members, in written procedure, to be considered a reunion of the Monitoring 

Committee, namely the 15 th . 

The Annual <strong>report</strong> on the SAPARD Programme implementation in Romania in 2007 

has been submitted for the approval of the MC members on the 5 th of June 2008 and 

has been approved by the Monitoring Committee members on the 16 th of June 2008 

and submitted to the European Commission on the 20 th of June 2008. 

Within the sixteen reunion of the Monitoring Committee on the 25 th of November 

2008, several aspects were presented: 

• The progress of the programme’s implementation; 

• The controls carried out and the manner of solving the complaints received 

by the Paying Agency for Rural Development and Fishery; 

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• Modification proposals of the financing table from NPARD – reallocation 

within measure 21 “Development and improvement of rural infrastructure”; 

• Implementation of the measures foreseen in the Action Plan set up for the 

implementation of the European Commission observations and 

recommendations received after the audit mission held during 3 rd – 13 th of 

June 2008; 

• The Audit <strong>report</strong> issued by the Audit Authority for the proper implementation 

of the Action plan; 

• European Commission’s position concerning the Romania’s request 

regarding the prolongation of the term of validity of AFA 2006. 

Within the reunion from the 25 th of November 2008, the Managing Authority for 

SAPARD Programme proposed, following the PARDF request, the modification of the 

financial table NPARD, respectively the reallocation within measure 21 “Development 

and improvement of rural infrastructure” of 45 million Euro community contribution 

from the affected areas to the not-affected ones, without modifying the initial amount 

allocated for this measure, respectively 524.81 million Euro. 

For the motivation of this proposal, the Managing Authority specified that during 

2000-2006, for measure 2.1 “Development and improvement of rural infrastructure” – 

not-affected areas, the contracted amount was of 575.56 million Euro, out of which 

431.67 million Euro Community contribution, against 516.27 million Euro initially 

allocated, while for the affected areas the contracted amount was of 60.76 million 

Euro, out of which 51.64 million Euro Community contribution, against 161.89 million 

Euro initially allocated. Thus, a surpass of the contracted public value resulted for the 

not affected areas totalling 59.29 million Euro and also an economy for the affected 

areas of 101.13 million Euro. 

Also, the Community contribution for measure 4.2 “Technical Assistance” has been 

increased with 0.1 million Euro, for 2005, through redistribution from measure 1.2 

“Improving the structures for quality, veterinary, and plant-health control, for the 



this measure. 

During the MC reunion from November 2008, it has been discussed the manner of 

reimbursing to the Commission all the amount earned within the SAPARD euro 

account, in accordance with the provisions of article 10 (3), Section A of the Annex to 

the Multi-Annual Financing Agreement, underling, at the same time, the necessity of 

a meeting with the EC representatives in order to clarify these aspects and to 

establish the procedure for reimbursing the interest. 

III. 5 Monitoring and evaluation system 

The monitoring of SAPARD Programme is performed using the indicators 

corresponding to the specific character of the assistance and socio-economic 

structural and environmental situation in Romania. 

At PARDF’s level the monitoring indicators are grouped as follows: regional 

indicators, financial monitoring indicators and achievement indicators. 

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The regional indicators give information on the position of SAPARD aid taking into 

account the development regions in Romania. They are very useful to point out the 

correlation of SAPARD Programme and regional development strategies. 

Financial monitoring indicators deal with the degree of the financial allocations 

execution pointing out, for the entire Programme and each measure, the total eligible 

costs programmed, committed and executed. These indicators can be used as an 

instrument to programme the allocations at national and regional level. At the same 

time the indicators signal deficiencies that can occur during the implementation of the 

Programme regarding allocations – commitments – payments flow. 

Achievement indicators measure the direct effects appeared as a result of the 

activities performed within each measure under the Programme, quantifying the 

operational objectives of the measures. For instance, the number of the approved 

projects, the involved capacities, the eligible costs, the public contribution paid to the 

beneficiaries in order to invest in machine work capacities, storing and marketing 

capacities (measure 1.1), or for the modernization of communal roads (measure 2.1) 

are achievement indicators. 

The monitoring activity supposes the cooperation of the parties involved in this 

process at national and regional levels. At local level, the experts responsible with the 

monitoring within the Paying Regional Centres for Rural Development and Fishery of 

SAPARD Programme monthly collect primary data and fill the regional indicators in 

the monitoring tables. 

The monitoring tables containing regional indicators are to be transmitted to the 

headquarters, where they are centralized and based on these the monitoring 

indicators at national level are obtained. 

The monitoring tables approved by the top management of PARDF are then 

transmitted to the Managing Authority which forwards them to the European 

Commission to prepare the meetings of the Monitoring Committees. 

Detailed information is presented in ”Monitoring Indicators” Annexes (Financial 

Tables – Annex 1, Monitoring tables – Annex 2, Approved Projects – Annex 3). 

To ensure an efficient system to trace and point out the SAPARD Programme’s 

implementation stage, a series of actions related to monitoring reflected in various 

daily, weekly or monthly situations regarding the collection of information and 

indicators in different stages a project goes through: application, selection, 

notification, contracting, payment claim application, payment authorization and the 

actual payment of the instalment. 

III. 6 Measures taken to correct problems identified in Programme’s 


Actions regarding procedures’ improvement: 

Following the letter of observations AGRI J 5/ GK/ DG/ D (2008) 20525, in July 2008, 

the Agency launched the process for the consolidation of the procedure manuals 

used under SAPARD Programme, in order to include the observations issued by 

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EC’s auditors. Thus, on September 26 th , 2008, Instruction no. 118 was issued and 

submitted to the Ministry of Public Finances – Paying and Certifying Authority. 

All the recommendations of the EC’s experts were discussed, and the amending 

proposals were inserted in the consolidated version of SAPARD’s procedures 

including all the instructions issued up to that moment. 

Methodology Unit 

Within the methodology’s procedure manual, the internal control system regarding 

the management of the instructions has been improved. The chapter “Amending the 

accredited procedures by instructions” included a sub-chapter related to the 

methodology for submitting, implementing and monitoring the instructions by 

PRCRDF and PCORDF. 

As regards the standard model of the instructions and the flow of their submission, at 

PARDF’s level, the provisions of the methodology’s procedure are implemented, with 

specific mentions related to: 

• Setting up at the PRCRDF and PCORDF’s level certain specific registers for 

recording the instructions, indicating the standard format of the registers within 

the procedure; 

• Submitting the instructions to PRCRDF and PCORDF, in order to be 

implemented, accompanied by an official letter signed by the PARDF’s 

General Director for filling in the audit trail. 

• Filling in two new forms at the PRCRDF/PCORDF/PARDF’s level: 

- Instruction <strong>report</strong> regarding the manual/the instruction no....../date; 

- Note for acknowledgement of the manual’s receipt / of the instruction. 

Also, there is an electronic register to record the instructions with information 

regarding the institutions where the instruction was submitted, the submission’s date, 

the date when the EC’s response was received, the accredited procedure manual, 

etc., as well as a register on paper with instructions, with the identification data of 

each instruction. 

The electronic register was improved by adding two new sections relating to the 

number and the address’ date of the submission of the instruction to the regional 

centres and county offices, as well as the date to implement the instruction. 

Within the Procurements Unit, Instruction no. 118/26.09.2008 for the modification of 

the procurements procedure for public beneficiaries of SAPARD Programme was 

issued. By this Instruction all the instructions and circular letters previously issued 

were included in the accredited Manual. 

In parallel with the control activity, CAD worked at: 

• improving the control procedure on SAPARD following the DG-AGRI’s 

recommendations made in the Observations Letter on July 2008 issued as a 

result of the DG-AGRI’s mission during June 2008; 

• drawing up the Action Plan requested by the European Commission (EC). This 

action consisted in: 

- Modifying the control procedure as the European Commission did not 

accept the provisions of the Instruction 105; 

- Drawing up a random sample increased to 15% for the not completed 

projects, until 30.11.2008; 

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- Participating in numerous meetings with the Certifying and Paying 

Authority (CPA) and the Managing Authority (MA); 

IT Unit 

During 2008, the IT Unit has launched the setting up of a database which contains all 

the projects that were submitted within the SAPARD Programme. On August 31 st , 

2008, the procedure for loading the database with all information was launched so at 

the moment the database contains all SAPARD projects submitted within SAPARD 

Programme, all addenda related to each project and also contains all the payment 

instalments (including all the information related to the payment order that the 

respective transaction has been made). 

The objectives of the IT System are: 

• development of a database in compliance with the requirements received from 

the European Commission; 

• designing and drawing up the models for collecting the necessary information 

from the financing application’s files and from the submitted projects’ files; 

• developing the procedures for saving and restoring the data; 

• developing the policies to ensure the data’s security and the access to the 

database, developing and providing a mechanism for granting the access’ 

rights at user level; 

• providing export format of the database to the European Commission; 

• developing a daily record of a data inserted in the database; 

• designing, drawing up and developing certain <strong>report</strong>s for monitoring the 

process of loading data. 

The insertion of the information in the database is drawn up by the experts of 

Contracting Directorate and Projects Payments Directorate (at Central level) and by 

the experts of Financing Application Verification Unit and Payment Claim Verification 

Unit (at regional level). The experts have rights either to insert data or to view data in 

accordance with certain decisions of the PARDF’s Director General, depending on 

the needs of each office separately. 

In order to insert data in the SAPARD database, all the experts have been trained 

through training sessions by IT experts in charge with the management of the 

database. In order to understand all the procedures for the automatic processing 

data, an operating manual has also been created. This manual is necessary to 

ensure that the product is in compliance with the standards in the field and/or the 

technical specifications of the database. It is the responsibility of all employees to 

apply the provisions of the manual. 

This manual is distributed to all the experts who operate in the database. Depending 

on the modifications of the database, the manual is periodically updated by the 

Directorates whose interface is changed. 

The manual presents the application field, the categories of the users and the people 

responsible for the process, defines the insertion into the system, the procedures for 

loading and updating the database, output <strong>report</strong>s, maintenance of the database. The 

training support, the sheets including the names of the participants to the training and 

the assessments of trained experts are in possession of the Human Resources 

Directorate. 

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Measures related to endowment 

In order to ensure the endowments necessary for the optimum progress of the 

activities, during 2008, beside the current functioning expenditures, procurements 

from the Agency’s own budget in total value of 3,543.600 lei, were performed. The 

procurements completed the existing endowments and their maintenance. At the 

same time, other requests occurred, as follows: 

1. Servers - 3 pieces; 

2. Computers for new employees – 127 pieces; 

3. GPS receivers for on-the-spot measurement -11 pieces; 

4. Computer peripherals ( switch, hard-disk); 

5. Soft for SAPARD projects data base, as well as assistance services; 

6. Consolidation, arrangement and rehabilitation works for PRCRDF Satu Mare 

headquarters; 

7. Reparation works, space redistribution, hygiene of headquarters, as well as 

arranging archiving spaces for all applicants; 

8. Office furniture for the new employees and completion of the existent 

endowments; 

9. Spare parts and components for printers, copy machines, fax machines and 

other IT peripherals; 

10. Maintenance services for the IT peripherals, telephone central, informatics 

applications; 

11. Stationary and other office supplies; 

12. Metallic shelves for archiving spaces to complete the existent endowment; 

13. Bookbindery and archiving documents services; 

14. Consultancy services for PARDF accreditation according to ISO 27 001 

standard; 

15. Ensuring vehicles for employees, as well as the materials requested for 

performing the on-the-spot checking, in all the areas of the country where 

these actions were carried out. 

Measures regarding the ensuring of the necessary staff 

Starting with July 2008, based on G.E.O. no. 65/2008 on the amendment and 

completion of G.E.O. 13/2006 regarding the establishment, organization and 

functioning of the Paying Agency for Rural Development and Fishery, by reorganizing 

SAPARD Agency, as well as for setting up of some measures regarding 

the effectiveness of the Paying and Intervention Agency for Agriculture, the number 

of the job positions of the Paying Agency for Rural Development and Fishery was 

supplemented by 350 positions. 

Also, the minister’s for agriculture and rural development order no. 152/4 th of July 

2008 regarding the approval of the organizational structure, the organizing and 

functioning regulation and the number of positions for PARDF, was issued. 

The approved number of positions was of 1,613 and the distribution on the three 

organization levels of the Agency was the following: 

• At central level : 323 positions; 

• At regional level: 451 positions; 

• At county level: 839 positions. 

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On December 31 st , 2008 the degree of filling in the job positions was of 90%. 

Out of the total approved number of 1,613 of positions, 1,461 positions have been 

filled in and 152 are vacant and distributed as follows: 

• At central level: out of 323 of approved positions, 277 have been filled in and 

46 are vacant. 

• At regional level: out of 451 of approved positions, 405 have been filled in and 


• At county level: out of 839 of approved positions, 779 have been filled in and 


At central level within the Control and Antifraud Directorate the position number was 

supplemented with 15 positions in order to ensure the efficiency of the ex-post control 

activity. 

At the regional level, the number of positions for the experts with ex-post control 

attributions was supplemented by 17 positions. 

The distribution of the staff on levels according to the attributions is the following: 

Level of 

Attributions 

Staff no. 

organization 

SAPARD 

EAFRD 

CENTRAL 323 53 270 

REGIONAL 451 155 296 

COUNTY 839 239 600 

TOTAL 1,613 447 1,166 

Measures of staff training 

The professional training of PARDF staff aimed at strengthening the professional 

competences according to the job position requirements and the strategy of 

Agency’s development concerning the following fields: security of information, 

measures of rural development concerning the evaluation, contracting, authorizing 

and payment accounting, debts recovering, legislation, management, 

communication processes and unitary application of the working procedures 

regarding the SAPARD and EAFRD Programmes. The number of employees 

included in the training sessions was of 1400. The SAPARD attribution staff 

benefited of internal training sessions, EFARD attributions staff benefited both 

internal training regarding the way of application the working procedures, as well 

as training sessions within: 

• RO2006/IB/AG/02 Twinning Project "Organization of the appropriate structures 

to ensure the absorption of the European funds after accession” 

• Phare Programme 2005 "Training of the staff within the institutions involved in 

the implementation of the National Program of Rural development and 

Operational Programme for Fishery and the potential beneficiaries” 

• RO2004/016-772.03.02.01.02 Phare Program "Training for the staff of 

Management Authority involved in the programming process and 

implementation of the system concerning EAFRD and EFF". 

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III. 7 Assuring the promotion of SAPARD Programme in Romania 

The promotion activity of SAPARD Programme during 2008 was achieved mainly 

through the presentation of the Programme’s implementation stage, by press 

releases and public information, successful projects implemented using SAPARD 

funds and also achieved within the specific public events. 

Considering that since 2007 investment projects for financial support under SAPARD 

Programme can no longer be submitted, during 2008 the Paying Agency for Rural 

Development and Fishery (PARDF) did not initiated any advertising campaigns of the 

Programme, the specific activity being based on information activities regarding the 

progress of the SAPARD Programme. 

In this respect, PARDF carried out a series of information activities, namely: 

• Presentation of models of projects implemented under SAPARD; 

• Drawing up and distributing informative materials; 

• Participation in promotion events; 

• Filing in and updating PARDF’s website. 

Informing the potential beneficiaries 

In 2008 the experts of PARDF from the central, regional and county levels informed 

9,400 potential beneficiaries through direct or telephone discussions, e-mail and 

letters. 

In addition to the accession and implementation of the National Programme of Rural 

Development 2007 – 2013, the information provided by the specialized department 

(Promotion, Communication and Mass-Media Relations Directorate - PCMMRD) and 

by the responsible for the advertising campaigns at regional and county levels was 

focused on the progress of SAPARD Programme, especially as regards the 

payments execution process. 

The monthly rate of people who requested information on the non-reimbursable funds 

is more than 40 people daily. During 2008 information was provided to potential 

beneficiaries, as follows: the largest rate - telephone communication (6,000 requests) 

followed by information on paper support (2,000 applications) and the direct 

information at the head office (1,400 meetings). 

At the same time, information on the payments status under SAPARD Programme, 

on successful SAPARD projects and implementation of SAPARD in Romania, were 

given during the specific public events. Thus, PARDF participated to 999 actions 

involving 25,202 people. 

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Following the discussions during the information activities, it was observed that a 

large part of the potential beneficiaries of the EAFRD are already prepared to access 

the European funds also due to the fact that examples on successful investments 

implemented under SAPARD Programme were promoted. 

Drawing up and distributing the informational materials 

The SAPARD Programme’s advertising was assured during 2008 by informative 

materials presenting successful projects implemented with European SAPARD funds. 

For this purpose a Newsletter of PARDF was drawn up and sent to media and 

PARDF’s target public - beneficiaries of the SAPARD Programme, potential 

beneficiaries of EAFRD and EFF, local opinion leaders, public institutions that 

PARDF collaborates with, educational institutions (Academy of Economic Sciences, 

Academy of Agricultural and Forestry Sciences, National Institute for Research 

Development for Land Consolidation) associations, employers, organizations in the 

agricultural-industrial field, natural and legal entities operating in the field of 

agriculture or rural development, public county and communal institutions (town 

halls, county councils, prefectures). 

Aspects and technical difficulties related to accessing the programme, the solutions 

for their settlement and presentations of the successful projects implemented by the 

beneficiaries of the non-reimbursable funds provided by the SAPARD Programme 

were included in PARDF’s Newsletter. 

3 Newsletters of PARDF were drawn up in March, May and June 2008. 

Participation at advertising events 

PARDF took part and represented the SAPARD and NPRD programmes through 

PCMMRD at the most important events specialized in promotion, organized by the 

Presidency of Romania, MAFRD, Chamber of Commerce and Industry of Romania, 

Romexpo. 

During these events, PARDF’s representatives presented the opportunities offered 

under SAPARD and EAFRD, distributed informational materials and provided to the 

target audience detailed information on the manner to obtain non-reimbursable funds. 

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Major events where PARDF participated: 

• Thematic seminars on European funding, organized by the Chamber of 

Commerce and Industry of Romania (CCIRB); National Conferences on the 

possibilities of EFARD financing - organized by Prefectures and County 

Councils; 

• International Fair for Agriculture INDAGRA Farm and INDAGRA Food - 

Romexpo; 

• Fair for Agriculture FINAGRA 2008; 

• International Agriculture Fair "Green Week 2008 - Berlin; 

• "Rustica Romania” Fair and "Europlant Protection" Fair; 

• Training sessions for information and professional perfection of the 

representatives of local authorities - organized by Eurocom; 

• National fair for tourist funding - organized by MTCT; 

• Fair financing for SMEs - TIMM 2008; 

• PROFINN financing fair; 

• Events organized by foreign embassies - the Netherlands, Turkey, Austria. 

Promotion of the SAPARD Programme 

Informing the potential beneficiaries through mass-media was particularly effective 

due to the credibility of the media among the public and due to the large number of 

people who receive information in very short period of time. 

Therefore, even if the Paying Agency for Rural Development and Fishery began the 

implementation of EFARD in 2008, it continued to pay special attention to the 

promotion of SAPARD Programme through: 

Press releases: 

• 4 press releases were sent to the mass-media. The releases referred to the 

action plan undertaken to resume the payments to the beneficiaries of the 

SAPARD Programme, as well as to the manner these payments were 

resumed. All of these press releases were entirely published by the press, 

with positive references. 

Effective communication with mass-media: 

• One of the most important objectives of the communication with the massmedia 

is maintaining a permanent communication with the media by 

ensuring the contact with the management of PARDF through fast and 

complete information of journalists; 

• Over 20 answers to journalists' requests were sent to the mass-media (the 

Press Agencies and TV). Most of these responses referred to the 

successful implementation of SAPARD projects, the clarification of some 

technical implementation aspects and to the number and value of all 

SAPARD projects that were finalized, sometimes emphasising on the 

hierarchy of development regions of the country; 

• Following the answers given to the journalists, there were requested and 

elaborated materials which were broadcasted within the news bulletins of 

national television stations (ProTV, Antena1, RealitateaTV), television 

interviews (TVR, Money Channel) and radio interviews (Radio Antena 

Satelor, Radio Romania Actualitati), most of them with positive references. 

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III. 8 Using the Technical Assistance 

Measure 4.1 “Improvement of vocational training” 

As regards Measure 4.1 “Improvement of vocational training”, 5 projects have been 

approved by the end of 2008, in value of 13,287.55 thousand lei, representing 3.65 

million Euro. All these projects have been contracted in 2005. 

The approved projects ensure the improvement of the vocational training for 

production practices, the training of the heads of agricultural and forestry holdings in 

the economical, technical and legal fields, the diversification or the re-orientation of 

different activities in rural area, the processing and marketing of agricultural and 

fishery products according to specific technologies, the protection of the environment, 

setting up of producers’ groups and the promotion of their objectives, principles and 

functioning, as well as the training of the members of the certified producers’ groups, 

in order to improve their activity. 

All the projects financed under this measure were finalized by December 31 st 2008 

and payments in value of 10,521.61 thousands Lei, representing 3.03 million Euro, 

have been authorized and executed. 

Measure 4.2 “Technical Assistance” 

10 projects in value of 5,839.98 thousand Lei, representing 1.54 million Euro, have 

been approved by the end of 2008 under the technical assistance measure. 

The approved projects ensure technical assistance for the Monitoring Committee (1 

project), national workshops (2 projects), information and advertising campaigns (2 

projects), training studies for other measures (2 projects), development of a data 

base containing reference prices (1 project) and the accomplishment of the 

intermediary assessment of the Programme (2 projects). 

All the projects financed under this measure were finalized by December 31 st 2008 

and payments in value of 5,214.57 thousands Lei, representing 1.42 million Euro, 

have been authorized and executed. 

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III. 9 Compliance of the complementarity principle between community funds 

and national funds 

According to the provisions of the art. 3 ”Complementarity and technical assistance“ 

from the Council Regulation (EC). 1268/1999 on the financial aid of the pre-accession 

measures for agriculture and rural development in the candidate countries of Central 

and Eastern Europe in the pre-accession period, "Community action complements 

national actions appropriate or contribute to them." To these provisions, the 

Romanian Government promotes a policy to support the agricultural producers. 

In 2008, under the financial support programs promoted by the Ministry of Agriculture, 

Forests and Rural Development, the budget approved by our institution in 2008, was 

allocated the sum of 3,127,090,019 Lei, for the payments to farmers from the state 

budget. 

The destination of these funds was as follows: 

• 461,295,430 lei, representing support for farmers in the form of value bills for 

purchase of diesel, seeds, chemical fertilizers and pesticides for crop 

establishment in autumn 2007 under Government Emergency Ordinance no. 

123/2006 and Government Decision no. 871/2007 amended by Government 

Decision no. 492/2008; 

• 143,970,395 lei, representing financial support to farmers in the livestock 

sector in 2007, based on Government Emergency Ordinance no. 123/2006 

and Government Decision no. 141/2007, of which: 

- pigs classified Class E 35,909,760 lei 

- pigs classified Class U 12,750,400 lei 

- bovines 1,196,300 lei 

- sows 1,966,200 lei 

- chicken 40,282,862 lei 

- milk 45,755,791 lei 

- bee families 5,001,980 lei 

- combat of varroasis 901,152 lei 

- restocking in hives 15,900 lei 

- test dissection 88,790 lei 

• 318,510,595 lei, representing complementary national direct payments in 

livestock sector, in 2007, according to Minister’s Order no. 295/2007 and 

Government Decision no. 985/2007, out of which: 

- bovines 259,834,170 lei (out of which part I 252,868,500 lei); 

- sheep and goats 58,545,105 lei (out of which part II 43,122,980 lei). 

• 570,964,572 lei, representing financial support for agricultural producers in the 

livestock sector in 2008, based on Government Emergency Ordinance no. 

123/2006 and Government Decision no. 3/2008, of which: 

- pigs classified Class E 125,330,700 lei 

- pigs classified Class U 30,396,150 lei 

- bovines 2,664,550 lei 

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- sows 4,894,425 lei 

- chicken 190,286,083 lei 

- eggs 39,999,523 lei 

- milk cow 165,405,386 lei 

- bee families 11,000,000 lei 

• 476,170,825 lei, representing complementary national direct payments in 

livestock sector in 2008, respectively bovines, according to Minister’s Order 

no. 295/2007 and Government Decision no. 1230/2008, out of which 

443,343,600 lei for bovines and 32,827,225 lei for sheep; 

• 10,096,338 lei, representing financial support to agricultural producers in 

vegetal sector, in 2007, based on Government Emergency Ordinance no. 

123/2006 and Government Decision no. 463/2007 modified through 


- operating groups producers 240,000 lei 

- system implementation EUREPGAG 92,051 lei 

- vegetable greenhouse 1,533,590 lei 

- mushrooms 329,729 lei 

- vegetables and fruit for processing 6,063,769 lei 

- vineyard sector 375,192 lei 

- potatoes for processing 1,420,075 lei 

- medicinal and aromatic herbs 41,932 lei 

- flowers, ornamental and dendrological plants 84,650 lei 

• 16,595,263 lei, representing the state insurance for infrastructure operating of 

land improvements in 2007, based on Government Emergency Ordinance no. 

123/2006 and Government Decision no. 463/2007; 

• 56,164,502 lei, representing financial support to agricultural producers in the 

vegetal sector in 2008, based on Government Emergency Ordinance no. 

123/2006 and Government Decision no. 570/2008, out of which: 

- system implementation EUREPGAG 42,496 lei 

- greenhouse vegetables 19,972,266 lei 

- mushrooms 3,527,799 lei 

- vegetables and fruits for processing 5,728,234 lei 

- purchasing of packaging for vegetables 985,470 lei 

- purchasing of packaging for fruits 283,787 lei 

- vineyard sector 21,286,398 lei 

- potatoes for processing 1,449,181 lei 

- medicinal and aromatic herbs 3,539,816 lei 

- flowers, ornamental and dendrological plants 60,975 lei 

• 106,393,190 lei, representing financial support for diesel purchase in order to 

make the mechanized works for setting up crops in spring and autumn 2008 in 

compliance with the Government Decision no. 277/2008, modified by 

Government Decision no. 829/2008 and Government Decision no. 1154/2008 

and Minister’s Order no. 174/2008, Minister’s Order no. 485/2008, Minister’s 

Order no. 568/2008 and Minister’s Order no. 174/2008; 

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• 15,794,545 lei representing financial support for seed for sowing plants in the 

financial year 2007/2008, according to Government Decision no. 1611/2006; 

• 91,604,529 lei, representing the public funds granted to agricultural producers, 

under the Agricultural Credit Law no. 150/2003; 

• 31,409,891 lei, representing financial support granted to the agricultural 

producers for the production of sugar beet and rice made in 2007, according to 


- 19,692,279 lei for sugar beet (656,409 to) 

- 11.717.612 for rice (23,435 to) 

• 31,512,000 lei, representing financial support, granted to the agricultural 

producers for a quantity of 105,040 tones soybean production performed in 

2007, according to Government Decision no. 1576/2007; 

• 233,468,263 lei, representing financial support, granted to the agricultural 

producers in accordance with “the minimis aid” scheme for setting up 

agricultural crops in autumn 2008, according to Government Decision no. 

1153/2008; 

- wheat - 181,467,201 lei, 

- rape - 29,469,380 lei, 

- barley/raw barley - 18,320,795 lei, 

- other crops - 4,210,886 lei; 

• 45,184,921 lei, representing the functioning of the land improvement 

infrastructure in 2008, based on the Government Emergency Ordinance no. 

123/2006 and Government Decision no. 420/2008; 

• 12,407 lei, representing support for the agricultural association in view to 

participate to organizations established at the EU level, according to 

Government Decision no. 545/2007; 

• 600,000 lei, representing support for the agricultural associations in view to 

participate to organizations established at the EU level, according to 

Government Decision no. 401/2008; 

• 1,893,272 lei, representing financial support granted for the acquisition in 2007 

of frozen seminal material from bulls certified and officially authorized, used in 

the artificial insemination, according to Minister’s Order no. 641/200; 

• 2,082,835 lei, representing financial support granted for the acquisition in 2008 

of frozen seminal material from bulls certified and official authorized, used in 

the artificial insemination, according to Minister’s Order no. 66/2008; 

• 100.000.000 lei, representing investment in agriculture, according to Law no. 

231/2005, for this measure being allocated 78.04% from the MAFRD budget in 

2008 (128,131,515 lei); 

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• 298,222,526 lei, representing non-reimbursable co-financing from the state 

budget for investments projects within the SAPARD Programme, according to 

Government Emergency Ordinance no. 59/2006; 

• 2,389,912 lei, representing SAPARD 4.1 and 4.2 measures (technical 

assistance and professional training); 

• 38,095,506 lei, representing direct support, granted for the neutralization of 

animal waste, according to Government Decision no. 1211/2005; 

• 17,438,046 lei, representing compensations for animals slaughtered to 

prevent and combat Epizooties, according to Government Decision no. 

1415/2004, established at the replacement value and market price of the 

animal slaughtered; 

• 20,731,203 lei, compensation granted as a result of the weather conditions 

from the autumn of 2006 and the spring of 2007 (excessive dryness) under 

Government Decision no. 636/2007 with subsequent amendments and 

additions; 

• 31,804,802 lei, representing agricultural life annuity for 2007, granted in 

accordance with the previsions of title XI from Law no. 247/2005. 

• 4,160,144 lei, representing finance from the state budget of some measures 

for conservation and use of animal genetic resources in critical condition, in 

danger and vulnerable under Government Emergency Ordinance no. 

194/2005, of which: 

- 199,309 lei, for 2007 year, according to Government Emergency 

Ordinance no. 194/2005, Government Decision no. 853/2007 and 

Minister’s Order no. 767/2007; 

- 3,960,835 lei, for 2008 year, according to Government Decision no. 

822/2008 and Minister’s Order no. 582/2008; 

• 267,737 lei, for subsidizing of a percentage of 50% from the insurance 

premiums related to the insurance contracts of the agricultural producers 

concluded with the insurance companies, under Government Decision no. 

74/2003. 

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Chapter IV 

Coordination of SAPARD Programme with Other Financial Instruments 

for International Support 

IV. 1 General framework 

According to the provisions set out in Art. 1 – Section C, of MAFA, the European 

Commission and Romania must ensure the co-ordination of support between the 

SAPARD Programme and the pre-accession instruments such as ISPA, PHARE, and 

the assistance of EIB (the European Investment Bank), as well as other international 

financial instruments. 

Under the MAFA provisions, in case any SAPARD project, due to its nature, might be 

entirely or partly eligible for assistance under one of the other instruments mentioned 

above, Romania must avoid any risk of the respective cost being incurred more than 

once. 

In order to avoid overlaps and ensure a transparent use of international funding 

instruments, Romania has created the structures needed to ensure the coordination, 

information and monitoring of the international financial assistance. 

The European Commission regularly analyses the progress Romania has made in 

using the funds that were allocated through the three financial pre-accession 

instruments PHARE, ISPA and SAPARD. 

For this purpose, the Joint Monitoring Committee (JMC) holds <strong>annual</strong> meetings and 

comprises representatives of the European Commission and of the Romanian 

authorities involved in the management of the pre-accession funds. JMC is 

responsible for supervising the progress of EU-funded assistance programmes 

(PHARE, ISPA and SAPARD). During 2008, the JMC met only once on the 10 th of 

June. 

In order to avoid double financing, PARDF has been working with the funding 

institutions for projects that are similar to those financed under the SAPARD 

Programme, in order to identify and remove any instance of possible double 

financing. 

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IV. 2 Assistance under PHARE Programme 

As regards the technical assistance provided by the PHARE Programmes, the 

following projects were put into practice for the Paying Agency for Rural Development 

and Fishery in 2008: 

IV.2.1 RO 2004/016-772.03. 02.01.02 EuropeAid/122610/D/SER/RO-Training for 

the staff of the Managing Authority and for the bodies involved in the 

programming process and the setting up of the implementation system 

Budget: EUR 500,000 

Value of the Services Supply Contract: EUR 499,400 

Implementation period: 13 months 

Project objectives: - To improve the professional skills and knowledge of the staff 

within the institutions involved in the implementation of the Rural Development and 

Fishery programmes 2007 – 2013, through technical assistance and training, in order 

to meet the requirements of the European Union. 

The following results have been achieved: 

• A detailed 3-years training plan was elaborated, in collaboration with the 

Romanian authorities, covering all personnel to be involved in the 

implementation of NRDP and FOP; 

• 134 persons within The Managing Authority for NPRD, the Managing Authority 

for FOP and within the institutions with horizontal responsibilities for EAFRD 

and EFF, were trained at national level; 

• 575 persons within The Managing Authority for NRDP, Managing Authority for 

FOP and within PARDF, were trained at regional/county level. 

The Contract was signed on November 30 th , 2006. The project was finalized on 

February 9 th , 2008. 

IV.2.2 RO 2005/017-553.03.02.01 –Training the staff of the institutions involved 

in designing and implementation of the Rural Development Programme and the 

Fishery Operational Programme 2007 – 2013 and communication activities of 

the bodies responsible for the implementation of the programmes 

Budget: 800,000 Euro 

Services Contract value: 797,920 Euro 

Implementation period: 10 months 

Specific objectives: 

• To train all the employees of PIAA, PARDF and of the two Managing 

Authorities responsible for the implementation and payment functions related 

to the Rural Development and Fishery Programmes; 

• To train the future members of the Monitoring Committee on the Rural 

Development and Fishery Programmes; 

• To provide detailed information for the main involved entities and for the 

potential beneficiaries of the Rural Development Programmes (RDP) and 

Fishery Programmes (FOP) regarding the available financing opportunities 

and administrative procedures to be implemented. 

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Results to be achieved: 

• Provision of introductory and intermediate level training, for the different 

institutions involved, in various aspects of RDP and FOP implementation; 

• Delivery of two information seminars in Romania for the bodies and main 

entities involved in RDP and FOP; 

• Production of high-quality information and communication materials – 

brochures, detailed guidelines for applicants, websites, posters etc. – to 

support the implementation of the RDP and FOP in Romania. 

The contract was signed on November 30 th , 2007, and the activities started on 

January 24 th , 2008. The project is finalized. 

IV.2.3 RO 2005/017-553.03.02.03 – Technical Assistance for the elaboration of 

the software necessary for the implementation of the Rural Development and 

Fishery Funds 

Budget: 4,000,000 Euro 

Services Contract value: 2,499,998 Euro 

Implementation period: November 31 st , 2007 – September 31 st , 2008 

The Technical Specifications have been elaborated within Framework Contract 

ROSU 41, the final form including all the observations specified by the beneficiaries. 

Objective: 

• The institutions involved in the implementation of the rural development and 

fishery programmes (Managing Authority, PARDF and the delegated bodies) shall be 

equipped with the SOFTWARE necessary for the Management of the Informatics 

System for the efficient operation at all the management levels and during all the 

stages (programming, tender, contracting, monitoring, evaluation, audit, control and 

horizontal procedures). 

Results to be achieved: 

• Analysis of the user’s requirements (functions and data); 

• Defining the user’s requirements. The requirements must be captured 

/interpreted / filled in by the contractor in a document which will be filed in 

interactively during the entire period of implementation of the project; 

• The document regarding the elaboration of the software application – detailed 

architecture of the system and functioning specifications; 

• Setting up a data base including detailed and accurate relationship diagrams; 

• A set of tested hardware, tested system and application modules already 

implemented; 

• A set of tested hardware, tested system and interface modules already 

implemented; 

• A set of tested hardware, tested system and modules for the conversion of 

data already implemented. The implemented modules for the conversion of 

data will be accomplished for the purpose of integrating the data written in 

different formats (e.g. MS Office, PDF, etc); 

• The reference technical documentation for the software application and the 

modules for the conversion of data; 

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• Environment for the configuration of the software for the development, testing, 

testing the acceptance of the user and of the production versions of the 

application; 

• Plans and results regarding the testing of hardware and systems; 

• Training the user, including the training materials and practical works; 

• Informing the user, including the user’s guide and the user’s manual. 

The services supply contract was signed on November 31 st , 2007. The project was 

finalized on February 27 th , 2009 and the Final Report was submitted for endorsement 

at PARDF. 

IV.2.4 Phare Twinning Project RO 2006/IB/AG/02 – Twinning to set-up adequate 

structures assuring the absorption of EU Rural Development and Fishery 

funds after Accesion 

Budget: 750,000 Euro 

Value of the Services Supply Contract: 750,000 Euro 

Implementation period: October 10 th , 2007 – January 10 th , 2009 

The objective of the project was to improve Romania’s capacity to absorb the 

necessary post-accession funds. 

Project’s purpose - To set-up adequate structures assuring the absorption of EU 

funds for Rural Development and Fishery after accession. 

The following results were achieved: 

• The strengthening of the institutional capacity of the Paying Agency for Rural 

Development and Fisheries and the improvement of its operational framework 

in terms of legislation and staff capabilities; 

• Training of staff at central, regional and county levels as regards the 

operational manuals; 

• Training of staff within the Paying Agency for Rural Development and 

Fisheries in line with the Common Agricultural Policy and rural development 

strategy; 

• The system will be developed and fully operational. 

The contract was signed on October 10 th , 2007 and the activities were launched on 

December 3 rd , 2007. The project is finalized. 

IV. 3 Other financial instruments 

IV. 3.1 The Rural Development Project for the Apuseni Mountains funded by 

IFAD 

On May 10 th , 1999, in Rome, through its Ministry of Public Finance, Romania and the 

International Fund for Agricultural Development (IFAD) signed the Loan Agreement 

regarding the Rural Development Project for the Apuseni Mountains, ratified through 

Government Ordinance No. 115/1999, approved by Law No. 25/2000. 

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The main objective of the Agreement is to raise household income and improve living 

standards among poorer communities in the rural mountain area, as well as creating 

new jobs in the rural area. 

The funding provided under the project totals 12.4 million SDR (Special Draft Right), 

the equivalent of 16.4 million USD; the loan is to be refunded between 1 st of June 

2004 and 1 st of December 2018. 

The programme was finalised on the 31 st of December 2006, the last fund draft date 

being 30 th of June 2007. The IFAD Programme shall continue in a revolving form until 

2018. 

For 2008 a number of 117 concluded contracts have been registered, the total value 

of the credits being of 4,771,408 USD, also being created 243 new jobs. 

In 2008 were registered 29 concluded contracts, the total value of the credits being of 

883,856 USD, also being created 55 new jobs. 

The programme covers 15 th counties: Alba, Arad, Bihor, Cluj, Hunedoara,Sălaj, Sibiu, 

Covasna, Harghita, Bacău, Buzău, Vâlcea, Vrancea, Neamţ and Suceava. 

The applicant must meet the following criteria in order to submit a project: 

• to be a resident in the area covered by the project; 

• to provide proof of his/her solvency; 

• to make proof of technical competence regarding the purpose of the loan. 

The actions funded by the Programme include: 

• Investments in the development, modernisation and upgrading of small and 

medium dairy and meat processing facilities, by providing them with specific 

equipment; 

• Procurement of animals to build parent breeding stocks, build modern shelters 

that provide appropriate conditions for livestock raising; 

• Equipping households with specific agricultural machinery and equipment; 

• Agro tourism – modernising existing buildings while preserving the traditional 

architecture of the area and design an appropriate inner layout of houses; 

• Traditional trades and crafts; 

• Agricultural production, namely: 

- plant crop establishment – mechanical operations; procurement of seed, 

fertiliser, fuel etc; 

- livestock farms – procurement of feed concentrates, vitamins, premixes 

etc. 

The programme implementation is carried out by the PCU (Project Coordination 

Unit) within the Ministry of Public Finances, the Ministry of Agriculture /DGRD - MA 

for NRDP, which monitors the project implementation and the Directorates for 

Agriculture and Rural Development in the 15 th counties that provide consultancy to 

potential IFAD beneficiaries. 

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IV. 3.2 Projects financed by the World Bank 

The project on “The Rehabilitation and Reform of the Irrigation Sector” – The 

objectives of the project are: decreasing the drought risk, increasing of the 

economical efficiency of irrigation, increasing of the irrigation management, 

increasing of the hydraulic and energetic efficiency of the irrigation scheme, 

involvement of beneficiaries (WUOs) in irrigation rehabilitation and management. 

The Loan Agreement, for financing the Project, was signed on August 26 th , 2003 by 

the Government of Romania and BIRD and the Parliament of Romania ratified the 

Loan Agreement in February 2004 through Law no. 4/2004. The implementation 

period is 2004 – 2011. 

The project will be implemented by the Ministry of Agriculture, Forests and Rural 

Development through the Project Management Unit. 

The total cost of the project is of 102.947 millions USD and will be covered as follows: 

• IBRD - 80.0 mil. USD; 

• Romanian Government - 20.622 mil. USD; 

• Water Users Organizations (WUOs) - 2.325 mil. USD. 

The components of the project are the following: 

Component 1. Rehabilitation of the irrigation systems 

(a) Rehabilitation of the main infrastructure 

Through the main irrigation infrastructure the water is taken over from the source and 

transported till the pressure pumping stations and it is composed by the intake, lifting 

pumping stations, the transport and delivery canals network and the afferent control 

structures. 

Through the Project, the main infrastructure should be rehabilitated in 2 phases: 

(a1). Sadova Corabia irrigation scheme (Olt and Dolj counties), area of 40.310 

ha and Terasa Nicoresti Tecuci (Galati county), area 11.030 ha; 

(a2). The irrigation schemes: Terasa Viziru, Terasa Brailei (Braila county), 

Campia Covurlui (Galati county), Fantanele Sagu si Semlac Pereg (Arad 

county). The area is of 100.000 ha) 

(b) Water meters 

Installation of about 300 water meters in the pressure pumping stations of WUOs 

which had concluded contracts for water delivering with the National Land 

Reclamation Administration (NLRA). 

(c) Rehabilitation of the on farm infrastructure owned by WUOs 

(c1) Rehabilitation based on technical design – 100% contribution of WUOs 

and works – 5% WUOs contribution 

(c2) Repairs of the on farm infrastructure through replacing of the worn spare 

parts, based on technical expertise – 100% WUOs contribution and spare 

parts – 10% WUOs contribution. 

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Component 2. Support for the institutional reform of the irrigation sector 

(a) Support for NLRA 

(a1) IT equipment endowment 

(a2) Design and implementation of the Management Information System 

(MIS). 

(b) Support for the Ministry of Agriculture, Forests and Rural Development 

(MAFRD) 

Endowment of the Regulatory Office of WUOs and Land Reclamation Directorate 

with IT equipment and technical assistance. 

(c) Economic analysis of the irrigation sector 

A study for establishing the economical viable schemes/part of irrigation schemes will 

be carried out in order to establish the priorities to invest in the economical zones. 

(d) Support for WUOs. 

Training and WUOs endowment with IT equipment, irrigation equipment and means 

of transport (motorcycles) for field watering survey. 

Component 3. Technologies for Energetic Consumption Reduction into the on 

farm infrastructure 

This component will focus on the possibilities to decrease the energetic consumption 

using pumping units and irrigation equipment with low pressure and establishment of 

a demonstration field with such equipment. 

Component 4. Support for Project implementation 

Financial support to the Project Management Unit: staff, IT and office equipment, 

means of transport and technical assistance for the Project implementation. 

According to the action plan for 2008, the activity had been focused on the irrigation 

infrastructure rehabilitation and the support for WUOs in order to improve the 

irrigation infrastructure for the on-farm irrigation systems that are in the property of 

the WUOs. 

A. Main infrastructure rehabilitation 

1. Main infrastructure rehabilitation in Sadova Corabia and Terasa Nicoresti 

Tecuci irrigation systems (40.000 ha and 10.000 ha respective) 

1.1. Main irrigation station rehabilitation L1, PN, PS and gate R0 at the Danube 

(works were completed in time – July 30 th , 2008) 

1.2. Rehabilitation of the channel and drainage network in the Sadova Corabia 

irrigation system (the completion – March 2010) 

a) The irrigation channel network – waterproofing and related hydro technical 

constructions (22 cannels - 190 km ) 

• Finalized works – 5 cannels (60 km); value: 13,7 mil lei; 

• Works in progress for completion (17 channels – 130 km) - 70% finalized; Value 

= 29,1 millions lei out of which paid = 20,4 millions lei; 

• Hydro technical constructions works – 100% realized; Value = 5,1 millions lei 

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b) Drainage channels – desalting and cleaning the wood and grassy vegetation (40 

channels – 180 km); 

• 18 channels (81 km) – finalized works; value: 2, 7 millions lei 

c) Restoring the tree shelter-belts – replanting of trees to restore the adequate tree 

density – 113 ha; 

• Finalized works 100%; Value: 0,87 millions lei. 

1.3. Rehabilitation of the irrigation infrastructure and drainage in the Terasa 

Nicoresti Tecuci irrigation system 

On April 30 th , 2008 took place the reception of the finalized works with 3 months in 

advance from the contract term. 

1.4. The feasibility study and the technical project for the rehabilitation 

included in the Phase II – about 100,000 ha Terasa Viziru and Terasa Brailei – 

Braila County, Campia Covurlui –Galati County, Fantanele Sagu and Semlac 

Pereg – Arad County) 

The technical – economical indicators according to the feasibility studies were 

approved by the Government in December 2008. 

• The technical project for Terasa Viziru irrigation system – finalized; The 

estimated value of works – 50 mil. lei 

• The technical project for Terasa Braila irrigation system –SPA km 166 

subsystems– finalized. The estimated value of works – 13.2 mil. Lei. 

1.5. Rehabilitation of 2 main pumping stations (SPA km 221 and SRP01 in 

Terasa Viziru irrigation system) 

- The contract is submitted to the special directorates from MAFRD for approval 

and signature. Works value = 9.6 mil lei. 

B. Support for Water Users Organizations (WUOs) 

b.1. Water meters for the pumping stations (SPP) owned by WUOs 

a. Planned 300 water meters; 

b. 151 water meters for 48 WUOs – 126 SPPs – in value of 2.0 mil lei; 

c. in preparation – 150 water meters for 75 WUOs. Estimated value 4.0 mil. lei. 

b.2 Rehabilitation of the on-farm infrastructure owned by WUOs 

b.2.a Rehabilitation based on technical project (100% WUO contribution for the 

project and 5% contribution for works) 

a. Planned: rehabilitation of 11 WUOs - Value: 8.4 mil lei; 

b. 5 WUOs from the Sadova Corabia irrigation system; Value: 4.44 mil lei; finalized 

works. 

c. 6 WUOs from Terasa Nicoresti Tecuci irrigation system; Value 3.98 mil lei; 

Deadline for completion – May 2009 

b.2.b Reparations (spare parts) based on technical expertise (100% WUO 

contribution for technical expertise and 10% contribution for spare parts) 

a. Planned: 50 WUOs; value: 51 millions lei; 

b. 4 WUOs – delivery finalized: 3.05 mil lei; 

c. 46 WUOs; Estimated value: 47 mil lei (under bidding process). 

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b.3. Procurement of the irrigation equipment (10% WUO contribution) 

a. Planned: 1500 installations for 100 WUOs; 

b. 595 irrigation equipment for 62 WUOs – delivery finalized during 2006-2007. 

Value: 6.3 mil. Lei; 

c. under preparation a package of 350 installations – 11.3 millions lei. 

b.4. IT equipments (10% WUO contribution) 

a. Planned: 100 sets /WUO ( 1 set: 1 computer +1 printer + 1 copy machine +1 fax); 

b. Realized: 53 Sets; Total value of goods = 0,5 millions lei; 

c. Under preparation 47 sets for 47 WUOs; Estimated value = 0.45 millions lei. 

b.5. Motorcycles for field irrigations survey and for interventions 

a. Planned: 140 motorcycles for 70 WUOs 

b. Realised: 78 motorcycles for 54 WUOs; Value = 0.25 mil lei 

c. Under preparation bid for 62 motorcycles; Estimated value = 0.3 mil lei 

The project „Modernizing Agricultural Knowledge and Information Systems” 

(MAKIS) is implemented by the Ministry of Agriculture, Forests and Rural 

Development (MAFRD) and by the National Sanitary, Veterinary and Food Safety 

Authority (NSVFSA) through theirs PMU’s. The Loan Agreement between Romania 

and the International Bank for Reconstruction and Development (IBRD) for financing 

the project was signed in Bucharest on January 28 th , 2005. The Loan Agreement was 

ratified through Law no. 170/2005 published in the Official Gazette no. 526/21 st of 

June 2005 and the effectiveness was announced on June 24 th , 2005. The total value 

of the project is of 59.88 million Euros, out of which 41.4 million Euro is the World 

Bank loan no. 4758-Ro and 18.48 million Euro is the contribution of the Romanian 

Government. The official launch of the project took place on September 22, 2005. 

The „Modernizing Agricultural Knowledge and Information Systems” Project is 

focused on three components that are priorities for EU integration, respectively food 

safety, agricultural research and information and extension system. 

The main objective of the project is to assist the Romanian Government to improve 

the competitiveness of farmers and agro-processors in the EU integration 

environment. This will be achieved through strengthening the National Sanitary 

Veterinary and Food Safety Authority and the phyto-sanitary units, modernization of 

the national agricultural research system and improvement of the consultancy and 

training services, thus ensuring the access to relevant technologies and information 

by the farming community in order to meet EU requirements. The primary 

beneficiaries would be middle-sized and small farmers with the potential to become 

commercial. 

The project is implemented over five years and consists of three components: 

A. Strengthening the National Sanitary, Veterinary and Food Safety Authority 

(NSVFSA) and the Phyto-sanitary Units; 

B. Support for Agricultural Research; 

C. Support for Advisory and Information System. 

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A. Strengthening the National Sanitary, Veterinary and Food Safety Authority 

(NSVFSA) and the Phyto-sanitary Units 

A.1. Institutional Capacity Building 

This subcomponent aims at improving the communication system, developing the 

awareness system and at supporting the press office from NSVFSA. 

‣ Strengthen the communication system with support for IT 

The ToRs regarding the consultance services corresponding to the preparation of the 

ToRs for the IT platform were approved by NSVFSA (25 th of March 2008) and 

forwarded to the World Bank for “no objection”. The World Bank made some 

comments based on which the Food Safety General Directorate from NSVFSA 

revised the ToRs. 

‣ Public Awareness System 

A.2 Improving the National and Regional Network of veterinary laboratories 

Within this component, the project supports the construction of a new building 

according to EU norms for the Institute for Hygiene and Veterinary Public Health 

(IHVPH) and equipping the Sanitary Veterinary and Food Safety Directorates 

(SVFSD) Bucharest, Braşov and Prahova. Through the MAKIS project there are 

provisioned 2 million Euro for the construction of the new building, while the most 

recent estimated cost is considerably higher. During the May 26 – June 6, 2008 

World Bank Supervision Mission it was discussed the possibility that a significant 

fraction of the fund from the NSVFSA component to be reallocated to the construction 

of the building. NSVFSA -PMU is to forward the reallocation request to the Ministry of 

Public Finances, after obtaining the approval of the technical departments and of the 

project coordinator. 

The equipments for SVFSD Bucharest and Braşov were procured and delivered to 

the beneficiaries. The bidding for SVFSD Prahova was postponed until the laboratory 

building rehabilitation with SAPARD funding is completed. 

A.3 Support for the strengthening the Border Inspection Posts: Otopeni, 

Constanţa North and South – subcomponent finalized 

A.4 Animal Welfare 

This subcomponent was initially designed to have NSVFSA contract the Pasteur 

Institute to carry out a program for Animal Welfare in livestock production to 

demonstrate the EU requirements. 

According to the training plan the project organized for 45 specialists a training 

session on animal welfare in Alba county. All the arrangements were made (February 

2008), but the session was postponed due to a visit from the European Commission 

and so far was not rescheduled. 

A.5 Phyto-Sanitary Units 

The project provides support to the Phyto-sanitary Department in MAFRD, including 

the two National Reference Laboratories and the county laboratories, through IT and 

laboratory equipment, training and technical assistance. All the equipments required 

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by the Central Laboratory for Pesticides Residues Control for Plant and Plant 

Products and by the Central Laboratory for Phyto-sanitary Quarantine were 

purchased and are currently in use. The construction of the water decontamination 

facility at the Central Laboratory for Phyto-sanitary Quarantine is underway and it is 

expected to be finalized during the first decade of 2009. 

A.6 Training Program 

The objective of this subcomponent is to train the NSVFSA staff and the phytosanitary 

personnel of MAFRD in EU institutions. 

B. Support for Agricultural Research 

B.1 Establishing the National Reference Laboratories 

‣ National Reference Laboratory for GMO Detection at INCDBH Ştefăneşti 

The aim of this subcomponent is to provide support for founding a National 

Reference Laboratory for GMO detection at INCDBH Ştefăneşti that is to be 

accredited by RENAR. 

June 24-27, 2008, three researchers participated to the First Global Conference on 

GMO organized by the Joint Research Center of the European Commission at Como, 

Italy. 

The RENAR audit, one of the compulsory stages of the accreditation process, was 

performed in November 16-18, 2008. There was analyzed the documentation, the 

laboratory records, the procedures for sample analysis and the two trials for which 

the accreditation was requested: qualitative and quantitative determination for soy 

bean and corn samples. According to the auditing <strong>report</strong> several problems were 

identified. INCDBH Ştefăneşti elaborated, in December 2008, an action plan to solve 

them, to be implemented starting January 2009. 

‣ National Reference Laboratory for the Implementation of the EU Nitrates 

(91/676/EEC) and Sludge Directives (86/278/EEC) at RISSA 

The aim of this subcomponent is to provide support for founding a National 

Reference Laboratory for the implementation of the EU Nitrates and Sludge 

Directives at RISSA. 

The researchers from RISSA attended several training programs, study tours and 

scientific conferences, as follows: 

‣ 1 st -4 th of July 2008, 3 researchers attended the conference “Green5, 

Conference for a Sustainable Development”, Vilnius, Lithuania; 

‣ 6 th -10 th of July 2008, 2 researchers participated to a documentation visit at the 

Federal Ministry of Agriculture, Forestry, Environment and Waters, Viena, 

Austria; 

‣ 16 th -20 th of September 2008, 3 researchers participated to the training course 

“Environmental Soil and Groundwater Research”, organized by Van Welt Ltd, 

UK; 

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‣ 20 th -24 th of October 2008, 3 researchers participated to the “Soil and 

groundwater conference” in Netherlands; 

‣ 26 th October – 1 st November 2008, 2 researchers participated to the training 

course “GIS basics” organized by the Cranfield University, Bedford UK; 

‣ 23 rd -27 th of November 2008, 3 researchers participated to the 17 th 

International Symposium of CIEC, Egypt. 

B.2 Reform program 

Five Research Institutes have been identified at time of MAKIS project appraisal, to 

be reformed in order to have the capacity to address priority research programs: 

Agricultural Research and Development Institute, Fundulea ; Potato and Sugar Beet 

Research and Design Institute, Braşov; National Research and Development Institute 

for Biotechnology in Horticulture, Ştefăneşti, National Research and Development 

Institute for Soil Science, Agro-chemistry and Environment Protection, Bucharest 

and Animal Biology and Nutrition Institute, Baloteşti. 

Regarding the rehabilitation works and the implementation stage of the training plan, 

the following results were recorded: 

‣ IBNA Baloteşti 

Rehabilitation works 

The land registration is finalized for the facilities that are to be rehabilitated: the main 

building of the institute, the nutrition physiology laboratory and the gas infrastructure 

of the institute. In December 2008, MAKIS-PMU sent to the World Bank for “no 

objection” the terms of reference for a consultancy company to elaborate the 

technical project and the feasibility study for the rehabilitation of the main building of 

the institute and the gas infrastructure of the institute. 

Training 

The institute organized between 25-26 September 2008, with support form MAKIS 

project, the “7 th International Symposium of Biology and Animal Nutrition”. 

‣ NARDI Fundulea 


The institute obtained the urbanism certificate for the facilities that are to be 

rehabilitated through MAKIS project. Consequently, a consultant company was 

selected to prepare the feasibility study, the technical project and help the institute 

obtain the construction authorizations. Following its negotiation, the contract was 

signed in May 2008. The TORs for the building rehabilitation, prepared based on the 

technical project and the feasibility study, were transmitted to the World Bank for “no 

objection” in December 2008. 

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Between May 26 - June 27, 2008, 5 young researchers were trained at CIMMYT 

(International Maize and Wheat Improvement Center) from Mexico at the training 

“Basis of the sustainable production systems”. 

‣ PSRDI Braşov 


‣ October 15-December 13, 2008, 1 researchers was trained at NEIKER, 

Instituto Vasco de Investigación y Desarrollo Agrario, Bilbao, Spain; 

‣ November 28-December 10, 2008, 2 researchers participated to the Fourth 

Latin-American Seminar on Potato Use and Commercialization. 

‣ ICPA Bucharest (RISSA) 


The reform plan includes the construction of a new building of the institute which will 

host the National Reference Laboratory for the Implementation of the EU Nitrates 

(91/676/EEC) and Sludge Directives (86/278/EEC). 

The urbanism certificate was obtained (May 2008). A company was selected to 

undertake the feasibility study, design the technical project and to obtain the 

authorizations for construction (July 2008). 

B.3 Mainstreaming the Competitive Grant Scheme 

The subcomponent’s aim is to mainstream into MAFRD’s regular activity a 

Competitive Grant Scheme, following the model implemented successfully by the 

Agricultural Support Services Project (ASSP). 

The Competitive Grant Scheme is managed by the Technical Unit within MAFRD with 

support from PMU-MAKIS. 

By the end of 2008, there were launched 5 competitive biddings (March 2007, August 

2007, January 2008, February 2008 and August 2008). The Grant Agreements were 

signed for the projects approved in the first four biddings, and the project proposals 

approved in the fifth bidding are in the negotiations phase. The concept notes and the 

project proposals were analyzed by peer reviewers and the ones that obtained the 

minimum required score were discussed by the CGS Board and consequently 

approved. On aggregate, there were signed 34 Grant Agreements (1 st bidding – 10 

projects, 2 nd bidding – 10 projects, 3 rd bidding 10 projects, 4 th bidding – 4 projects; 

Annex 1 – list of signed grant agreements) and one was later cancelled by the CGS 

Board. At the beginning of 2009 there will be launched the 6 th bidding to commit the 

remaining CGS funds. 

MAKIS-PMU assisted CGSTU in all aspects of CGS implementation and especially 

regarding financial management, procurement, monitoring and evaluation (including 

the computerized Management Information System). 

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C. Support for Advisory and Information Systems 

The objective of this component is to improve the capacity of the agricultural 

consultants, food safety specialists and of the agricultural researchers to better serve 

the needs and improve competitiveness of farmers, producers and processors and to 

increase access of farmers and processors to knowledge on technologies related to 

production, quality control, food safety, processing and marketing in order to meet the 

EU requirements. 

C.1. Setting-up the Training and Information Center 

This component supports the setting-up of four Training and Information Centers 

(TICs) for training agricultural consultants, food safety inspectors and researchers. To 

coordinate TICs activities a Consultative Council was founded with representatives 

from: MAFRD, MAKIS-PMU, NAAC, AAFS, NSVFSA, agricultural universities (4 

seats), Romanian Farmer’s Association, private sector. 

The Contract Amendment with TIC Bucharest was signed (May 16, 2008) for training 

660 agricultural consultants and 100 food safety inspectors. By the end of 2008, there 

were trained 240 agricultural consultants and 100 food safety inspectors. 

By the end of 2008, there were trained 40 agricultural consultants, 40 researchers 

and 20 food safety inspectors at TIC Cluj, and 20 agricultural consultants at TIC 

Timişoara. 

C.2. Improving Effectiveness of the Advisory Services 

Contract Extension Activities 

This subcomponent provides support for information campaigns for farmers and agroproducers. 

To support the “Farmer” program there were edited and distributed the 

brochure “Guidelines for the Farmer Program” 10,000 copies and the leaflet “Farmer 

Program for any understanding: 5 important steps to be taken”, 10,000 copies each. 

MAFRD requested support from MAKIS project for the implementation of information 

campaign regarding CAP’s second pillar measures, producer groups and agroenvironmental 

schemes, and for PIAA’s information campaigns on Single Area 

Payment Scheme and on the National Complementary Direct Payments applicable to 

CAP’s first pillar. The information campaign on the CAP’s Second Pillar measures 

was implemented by flyers dissemination and by producing and broadcasting audiovideo 

spots. For the PIAA campaign there were printed 150,000 information flyers 

regarding the SAPS funds requests and 250,000 copies of the “Single Area Payment 

Scheme – The Farmer’s Guide”. 

V. Annexes: 

Annex 1 – Financial tables; 

Annex 2 - Monitoring tables; 

Annex 3 - Approved projects. 

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annual report on sapard programme implementation in ... - MADR

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